If the events of a global pandemic weren’t enough to convince you to have an estate plan made, including a financial Power of Attorney and a Health Care Power of Attorney, perhaps you don’t think anything bad will ever happen to you. This is a big mistake, says the article, “Nearly 90% of American adults are vulnerable because they are missing this key document” from MarketWatch.
A Power of Attorney is used to allow someone to handle financial affairs if you become ill or are injured. If you don’t have a POA, your family will need to go to court for an expensive guardianship hearing. The delays, costs and stress can easily be avoided.
There’s a 100% chance one day you will die. If you’re over 65, a more than a 70% chance you will experience some form of incapacity at some point. As you get older, the odds for both increase. The smart thing to do, for yourself and those you love, is to have an estate plan created, with the necessary documents, including a Power of Attorney.
A recent study shows the number of people with wills has fallen from 31% last year to 26% this year. A last will and testament is the most basic part of an estate plan, and one everyone needs. It’s where you map out your wishes for asset distribution and name an executor to manage your estate.
Trusts used to be considered a specialty instrument for wealthy people. However, those days are long gone. People are more educated about estate planning than in the past, and they understand the value of incorporating trusts into their estate plan. Trusts are used to remove assets from the estate, so they aren’t tied up in probate. They are also good for distributing assets in blended families and for those who own complicated property.
Think of the durable power of attorney as the workhorse of your estate plan. They don’t have to be used at creation. However, having them in place prevents many problems. Bills can be paid, investments can be managed and financial disasters can be averted when a trusted, responsible person can take over the financial aspects of life if you are unable to.
The same goes for having a health care power of attorney. This document allows another person to step in and be involved with medical decisions and talk with physicians. Having to run to court to obtain guardianship in the middle of a health care crisis means that doctors and state laws will make decisions for you or a loved one. It's far easier to meet with an estate planning attorney and have these documents created.
HIPAA authorizations are needed to ensure that your representative can communicate with your insurance company, access your medical records and speak with doctors. Everyone should have more than one person authorized to do this, in case the primary is unavailable. Many people don’t realize how critical this document is until there’s a medical crisis and a family member is told they can’t talk to the physicians.
For the most part, these are not highly complex documents and don’t take an inordinate amount of time to create. Once they are created by an experienced estate planning attorney, the family or spouse can be involved in decision-making in the event of a crisis or incapacity.
Reference: MarketWatch April 14, 2026) “Nearly 90% of American adults are vulnerable because they are missing this key document”
