Why Do You Need a Durable Power of Attorney in Your Estate Plan?

Giving someone legal authority over your personal and financial affairs might seem scary. However, the consequences of not naming someone you trust with this responsibility can be worse if an accident or illness renders you incapacitated. In Arizona, a durable power of attorney is a document that lets someone make decisions on your behalf if the worst happens. It’s also a crucial component of a sound and effective estate plan.

What Is a Durable Power of Attorney in Arizona?

Under Arizona law, a durable power of attorney (POA) is a legal document that appoints a trusted individual to act as your agent and make critical decisions when you can no longer communicate your wishes. The purpose is to ensure that someone with your best interests in mind handles your medical, legal, and financial affairs.

The Benefits of Having a Durable Power of Attorney

Including a durable power of attorney in your Arizona estate plan offers many benefits, such as:

• Control – You choose a trusted person to make decisions that align with your wishes regarding complex matters like life-saving measures and end-of-life care.
• Continuity – Designating someone to manage your financial or medical affairs can minimize interruptions if you become incapacitated.
• Flexibility – A general POA can grant broad authority to an agent or be narrowly tailored to specific areas of your life. For example, you can designate an agent solely to handle your medical decisions while you elect a different person to manage banking, investment, and tax matters.
• Avoiding court intervention – A durable power of attorney prevents the need for a court-appointed guardian, saving your family time and expense.
• Reducing family stress – Clear authority prevents disagreements among your family about who should handle your affairs.

When Does a Durable Power of Attorney Take Effect?

A durable power of attorney can take effect immediately upon signing or only if you become incapacitated, depending on how it’s written. Many choose the latter option, known as a “springing” power of attorney. A springing power of attorney activates only if a doctor certifies that you cannot manage your affairs.

How Does a Durable Power of Attorney Fit into Your Estate Plan?

A durable power of attorney is a key component of an estate plan because it provides a safety net for managing your affairs during your lifetime. Unlike a will, which takes effect after your death, a durable power of attorney ensures that someone you trust can oversee important tasks if you cannot do so. It works alongside other estate planning tools like wills and healthcare directives, providing comprehensive legal protection.

Common Mistakes to Avoid with a Durable Power of Attorney

Working with an experienced Arizona estate planning lawyer can help you avoid common mistakes involving a durable power of attorney. Some potential pitfalls a lawyer can help you avoid include:

• Selecting someone unreliable or untrustworthy to act on your behalf
• Leaving vague instructions that lead to misunderstandings or misuse of authority
• Failing to revise the document when circumstances or relationships change
• Ignoring specific legal formalities that could make the document invalid
• Failing to inform your agent or family about the document’s existence and purpose

Contact Our Arizona Estate Planning Lawyers Now

The Arizona estate planning attorneys at Brown & Hobkirk, PLLC build comprehensive estate plans that give clients peace of mind in knowing their affairs are in order no matter what the future holds. Let us help you, too. Contact us today for a free consultation.