Why Include a Power of Attorney in Your Estate Plan?

 Posted on January 22, 2025 in Estate Planning and Administration

One of the goals of estate planning is to put a plan in place for the unexpected. That way, if and when a difficult life event takes place and you are left incapacitated or unable to make certain decisions, there are mechanisms in place to both honor your wishes and lessen the burden on your family.

A key way to do this is by ensuring that your estate plan contains the relevant power of attorney for your situation. An experienced Texas estates planning attorney can draft a legally binding power of attorney as part of a comprehensive estate plan. 

What Is a Power of Attorney?

A power of attorney is a legal document that appoints an agent to act on your behalf. The agent manages your financial, personal, or medical matters when you are no longer able to do so due to incapacity or illness. Depending on the scope of the power of attorney, the agent can make decisions about a range of personal and financial issues or only in a specific area such as medical matters. 

What Are the Types of Powers of Attorney?

General Power of Attorney

The most comprehensive power of attorney, the general power of attorney grants the agent the right to act on your behalf on a wide range of matters. The general power of attorney is usually used if you face extended illness or travel and wish to have someone handle your affairs in your stead. It remains effective until you either revoke it, pass away, or become incapacitated. 

Limited Power of Attorney

The limited power of attorney appoints an agent to take action in specific areas or within a limited time frame. You would grant a limited power of attorney when you need the agent’s assistance completing specific tasks such as selling property. 

Durable Power of Attorney 

This "statutory power of attorney" gives the agent the right to act on your behalf even if you are incapacitated. It lasts past incapacitation, hence the word "durable." This type of power of attorney can be a very useful tool in long-term estate planning. It gives the agent the power to make decisions about medical care, finances, and legal issues for you if and when you can no longer make them for yourself. 

Springing Power of Attorney

A springing power of attorney is activated if and when a certain event occurs, such as your incapacitation. 

Medical Power of Attorney

As the name suggests, this power of attorney grants the agent the power to make medical decisions on your behalf. It usually only becomes active if you become incapacitated. 

Contact a Hill County, TX Estate Planning Lawyer

An experienced Hood County, TX estate planning attorney can draft powers of attorney to suit your needs. At Cain & Kiel Law we work with clients to create a comprehensive and proactive estate plan that minimizes uncertainty for yourself and your family. Call our offices at 817-645-1717 to speak to our skilled attorneys.