Prepare Now with a Power of Attorney

A Power of Attorney document is one of the most important estate planning documents that an individual can have in place. It is a document whereby a person can appoint another individual to act on his/her behalf in regard to financial or medical matters (or both). This allows the Agent under the Power of Attorney to handle financial matters, such as paying bills, handling banking transactions, and many other financial matters. An Agent under a Healthcare Power of Attorney can also make medical decisions, such as consenting to medical treatment, communicating with a physician or other healthcare provider, accessing medical information, etc. Having a Power of Attorney in place is essential if an individual should become unable to do any of these things on his/her own. A sudden illness or injury can result in a person being unable to make decisions or handle financial decisions, or worse, result in a person becoming incapacitated for an extended period of time or permanently. While these matters can be handled by an Agent appointed under a Power of Attorney, it is essential to have this document in place before an illness or accident happens.

 

A person must have the sufficient capacity to execute a Power of Attorney. This requires at a minimum, that they understand the power that they are giving another person to act on their behalf and to be oriented to person, place and time. If a person has not executed a Power of Attorney, and suddenly becomes ill, or has an accident and is hospitalized, they may not have the required capacity to sign a Power of Attorney at that time. Furthermore, in Pennsylvania, a Power of Attorney must be signed in front of two witnesses and a notary public. Even if a person is conscious and competent to sign a Power of Attorney, if they are in a hospital, it becomes more difficult to properly execute the document with the required witnesses and notary, especially during the Covid-19 pandemic. Therefore, it is essential to prepare in advance of becoming sick or hospitalized, by putting this document in place while you are still healthy and able to execute the document.

 

Another reason to prepare a Power of Attorney in advance is because if an individual becomes incapacitated without previously executing a Power of Attorney, it is likely that guardianship proceedings will need to be instituted in order to appoint a guardian to make financial or medical decisions for the person. The guardianship process, which requires petitioning the court, is a more complex and expensive process compared to executing a Power of Attorney. A guardianship hearing could also result in a different guardian being appointed other than a person that the individual would have chosen for him/herself.

 

As we have just entered into a new year, now is the best time to prepare in advance by executing a Power of Attorney. A new year is also the perfect time to review or update your current estate plan, especially if there have been any significant changes in the past year, such as births, weddings, divorces, etc. Do not put off until tomorrow what you can do today! For help with your estate planning needs, click here to contact us or call McAndrews, Mehalick, Connolly, Hulse and Ryan, P.C. at 610-648-9300 and ask to speak with one of our estate planning attorneys.