It's Not Bad Luck To Plan For The Future

Many people avoid making legal and financial plans because they think it will bring bad luck.

Others put it off because it feels overwhelming. But waiting too long can create serious problems for you and your family. The best way to avoid these challenges is to plan ahead and talk openly with the people you trust.

What Is a Power of Attorney?

A Power of Attorney (POA) is a legal document that lets you choose someone you trust to make decisions for you if you cannot make them yourself. This person could be a family member, a close friend, or an attorney. The rules for creating a POA differ by state. In most cases, you will need an attorney, a witness, and a notary to complete the paperwork.

Medical Power of Attorney

A medical POA allows the person you choose to make healthcare decisions and receive medical information if you are unable to do so. Without this document, doctors and other healthcare providers cannot discuss your health or share medical information with your loved ones because of privacy laws. Giving your healthcare team a copy of your medical POA helps ensure your wishes are followed.

Financial Power of Attorney

A financial POA allows someone you trust to handle your money and financial matters. This may include paying bills, signing checks, using your bank accounts, or working with businesses on your behalf.

Banks and other companies usually need a copy of the financial POA before they can speak with your chosen representative. Many people choose the same person to serve as both their medical and financial POA.

Why It Is Important to Plan Early

You must be able to understand and make your own decisions when you sign a POA. If you wait until you can no longer make those decisions, your family may have to ask a court to appoint a guardian or conservator. This process can take a long time, cost a lot of money, and be stressful for everyone involved.

Many people in the early stages of Dementia are still able to make informed decisions and can sign a POA.

Create a Financial Plan

A financial plan helps protect your money and makes it easier for someone you trust to manage your finances if you become ill or unable to do so yourself. Your plan should include bank accounts, investments, retirement savings, insurance policies, and other important assets. It should also comply with state and federal laws and align with the instructions in your POA documents.

Get Professional Help

Creating a complete financial plan can be difficult. While a bank employee can help with simple tasks, such as opening a joint account, you may also want advice from professionals who specialize in long-term planning.

Depending on your needs, these professionals may include:

• An estate planning attorney

• A financial advisor

• An accountant

• An insurance professional

They can help you protect your savings, plan for future healthcare costs, and make sure your wishes are carried out.

Plan Today for Peace of Mind

Taking care of your legal and financial plans now can save your family time, money, and stress. Planning ahead gives you more control over your future and helps ensure that the people you trust can step in when needed.

Remember, planning for the future isn't bad luck—it's one of the best gifts you can give yourself and the people you love.

Content Contributor: Janet Yagoda Shagam, Ph.D., is a freelance medical and science writer and the author of "An Unintended Journey: A Caregiver's Guide to Dementia", available through Amazon. Please visit our Author's page to learn more and find this title.

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