The Benefits of a Power of Attorney: Why Everyone Should Consider One
- Rikesh Wadhwa
- Aug 19
- 3 min read
When people think about planning for the future, wills and estate plans are often the first things that come to mind. But there’s another essential document that is just as important: a Power of Attorney.
A Power of Attorney is a legal document that gives someone you trust the authority to make decisions on your behalf. Usually these decisions are financial decisions. While it is difficult to think about being unable to manage your own affairs, the reality is that unexpected illness, injury, or absence can happen at any time.
The following are some benefits of having a Power of Attorney in place:
1. Ensures Your Financial Affairs Are Managed Without Delay
Life doesn’t stop when you’re unable to handle things yourself. Bills still need to be paid, taxes filed, and investments managed. With a POA, you appoint an agent to step in immediately to handle these responsibilities. This means your mortgage payments, utilities, and other financial obligations won’t fall behind if you become incapacitated or are simply away for an extended period as the agent you appoint now has access to your all of your financial accounts. They are responsible for using your money keeping your best interests in mind.
2. Avoids Costly and Stressful Court Applications
If you don’t have a POA and you become unable to make decisions, your loved ones may need to apply to the court to be appointed as a guardian or trustee. This process can be expensive, time consuming, and stressful for your family, especially during an already difficult time. A properly drafted POA helps avoid this by granting decision-making authority in advance.
3. Provides Flexibility and Control Over Your Future
Creating a POA doesn’t mean giving up control today. You decide who will act as your agent, what powers they will have, and when it takes effect. Generally, a POA only comes into effect if you are determined to be unable to make decisions for yourself, however there is also the option to have a POA come into effect immediately if circumstances dictate the need for that.
By making these choices yourself, you maintain control over your affairs and ensure that someone you trust will step in if needed.
4. Protects Against Financial Abuse
A POA can actually protect you from financial exploitation by setting clear rules and limitations on your agent’s authority. For example, you can require them to keep records, consult with others, or seek professional advice before making major decisions. Choosing the right person, someone trustworthy and responsible, is key to safeguarding your interests. The power that an agent has when acting as your agent is significant so it is best to give extra thought into who you are appointing before making that decision.
Conclusion
A Power of Attorney isn’t just for seniors or those with health concerns. It’s an important part of planning for anyone who wants to protect their finances and their family’s future.
By creating a POA, you’re not just signing a document. You’re making a proactive decision to keep control over your life, even if circumstances change.
If you don’t yet have a Power of Attorney, we at Stokes Law LLP are equipped to start the process of having one prepared for you. Contact our office immediately to ensure you are protected.