Wills are important legal documents to have if you own any assets. These documents provide clear instructions on how you want your assets to be distributed after your death. A Will is the primary means to ensure your wishes about asset distribution are honored. In the United States, while you can write your own Will or use online services to construct one, it is crucial to ensure your Will is clear and legally sound. Otherwise, it may be subject to court challenges during the probate process, leading to delays and additional expenses (American Bar Association, n.d.).

There are two main types of Power of Attorney (POA) for financial matters in the United States: general and durable. These are legal documents that authorize another person (your agent) to manage your financial matters and property.

• General Power of Attorney: This type of POA allows a person to act on your behalf for financial and legal matters. However, it ends if you become incapacitated or pass away.
• Durable Power of Attorney: A Durable POA provides the same powers as a General POA but remains in effect even if you become incapacitated. It is a key tool for advance planning, ensuring that someone you trust can manage your financial affairs in case you are unable to do so (National Institute on Aging, 2021).

In the United States, POAs generally come into effect once the document is signed and notarized, although you can specify that the authority is only to be activated under certain circumstances (known as a “springing POA”). Creating a Durable POA is an essential part of advance care planning. It ensures that financial decisions can continue to be made on your behalf, reducing potential stress and confusion during difficult times (American Bar Association, n.d.).

Choosing the person identified in your POA document is a critical decision. The individual should be someone you trust implicitly to act in your best interests. It is also advisable to discuss your wishes with the designated person to ensure they understand and are willing to take on the responsibility if needed. Regularly reviewing and updating your POA document is essential, especially if your circumstances or relationships change.

By establishing both a Will and a Durable POA, individuals can ensure that their financial and personal affairs are managed in accordance with their wishes, providing peace of mind for themselves and their families.