Do You Need a Power of Attorney if You Have a Will?

 Posted on September 06, 2024 in Civil Litigation

Many people believe that having a will is enough to protect their interests and manage their affairs. However, a will and a power of attorney serve different purposes in estate planning. An Illinois estate planning lawyer can explain why you might need both documents and how they work together to protect your future.

What to Consider About Wills and Powers of Attorney

A will is a legally binding document that states how your assets should be divided once you are no longer alive. It becomes effective only after you pass away. On the other hand, a power of attorney (POA) is a document that authorizes someone to make decisions on your behalf while you are still alive. There are two main types of POAs:

• Healthcare power of attorney: This enables your agent to make medical decisions on your behalf if you cannot do so yourself.
• Financial power of attorney: This allows your chosen agent to manage your finances, pay bills, and make financial decisions for you.

Why You Need Both a Will and a Power of Attorney

Having both a will and a POA provides comprehensive protection for various scenarios:

• Incapacity planning: A POA ensures someone can manage your affairs if you become temporarily or permanently incapacitated. Your will cannot help in this situation because it only takes effect after death.

• Seamless financial management: With a financial POA, your chosen agent can handle your finances without interruption, even if you are hospitalized or unable to manage them yourself.

• Healthcare decisions: A healthcare POA allows your trusted agent to make medical decisions based on your wishes if you cannot communicate them yourself.

• Asset protection: While your will determines asset distribution after death, a POA can help protect and manage your assets during your lifetime, especially if you become incapacitated.

• Avoiding guardianship proceedings: Without a POA, your family might need to go through costly and time-consuming guardianship proceedings to handle your affairs if you become incapacitated.

How to Set Up Your Will and Power of Attorney

Creating a will and power of attorney is important in protecting your future. It is important to make sure you go about the process correctly.

Assess Your Needs

Begin by thinking about your estate planning goals. What assets do you have, and how do you want them managed or distributed? Consider your family situation, including any dependents or special needs.

Choose Trusted Individuals

You need an executor for your will to manage your estate after your death. For your power of attorney, choose an agent to decide on your behalf if you become incapacitated. These individuals should be trustworthy, financially responsible, and capable of handling potentially difficult situations.

Consult an Attorney

Your attorney will ask important questions you might not have considered, ensuring your will and power of attorney are comprehensive. They will also ensure everything is legally valid, giving you peace of mind that your wishes will be carried out as intended.

Keep Your Documents Updated

Life changes, and your legal documents should change with it. Review your will and power of attorney at least every few years and update them after significant life events such as marriages, divorces, births, deaths, or significant financial changes.

Protect Your Future with a DuPage County, IL Estate Planning Lawyer

Are you ready to secure your legacy and ensure your wishes are respected? A Rock Island County, IL estate planning attorney can guide you through creating both a will and power of attorney tailored to your unique needs. Call SpyratosDavis LLC at 630-810-8881 for a private consultation.