A power of attorney (POA) is a legal arrangement that grants someone the authority to make certain decisions or take specific actions on your behalf when you’re incapable of deciding for yourself. There are all kinds of scenarios in which having a POA can be invaluable. Determining a useful POA demands foresight, though, because the arrangement must be in place before it’s needed. Here are just a few situations in which a POA may be needed. 

3 Scenarios When You Might Need a Power of Attorney

1. Incapacitation

It’s common for military personnel to create powers of attorney before deploying because they run the risk of getting injured while overseas. At the end of the day, though, anyone can get seriously hurt on any day. If you’re incapacitated following a car accident, for example, a POA will allow loved ones to manage your affairs with considerably less stress while you recover.

2. Illness or Cognitive Decline

When people fall ill or start experiencing a decline in cognitive function, they may still be able to manage their affairs, but it may be in their best interest if they don’t. Since cognitive decline is common with aging, it’s especially important for seniors to create POA arrangements before they actually need them. 

3. Financial Transactions 

Financial POAs allow the agent to complete a transaction on the principal’s behalf. If you’re in the military, for example, you can grant a family member or realtor the authority to close on a property at your next duty station before you’ve actually made the move. Such arrangements are limited because they only apply in specific, one-time scenarios. 
 

If you want to create a power of attorney for one of the situations mentioned above, turn to the knowledgeable estate planning team at Wills and Trusts Hawaii. Based in Honolulu, this firm focuses solely on helping clients plan for all contingencies, which allows them to provide comprehensive counsel on everything from long-term care to living trusts. During their time practicing in Hawaii, they have built a stellar reputation for providing quality and personalized service. To reach out and request an initial consultation regarding your power of attorney arrangements, visit their website or call (808) 792-8777.