Accidents, illness, or aging-related decline can leave anyone—regardless of wealth or status—unable to make personal decisions. For business owners and individuals alike, this raises an important question: Who will make decisions for you if you can’t?
Two of the most essential tools in any estate plan are powers of attorney and advance directives. These documents ensure that your financial and healthcare wishes are followed even if you’re unable to communicate them yourself.
What Is a Power of Attorney (POA)?
A power of attorney is a legal document that allows you to appoint someone (your “agent” or “attorney-in-fact”) to make decisions on your behalf. POAs can be:
- Durable – remains in effect if you become incapacitated.
- Springing – only becomes effective under specific conditions (e.g., doctor certification of incapacity).
- Limited or General – covers only specific transactions or grants broad authority.
Key Uses of POA:
- Managing bank accounts
- Paying bills
- Overseeing real estate or business operations
- Filing taxes
For business owners, a durable POA can ensure your company’s finances continue to be managed seamlessly if you’re suddenly unavailable.
What Is an Advance Directive?
An advance directive (also called a living will) outlines your healthcare preferences and appoints a trusted person to make medical decisions if you can’t. These documents typically include:
- Living Will – Specifies treatments you do or do not want (e.g., resuscitation, intubation).
- Healthcare Power of Attorney – Appoints a healthcare agent to speak for you.
Advance directives are critical to ensure:
- Your personal wishes regarding life support or palliative care are honored.
- Your family isn’t left to make emotionally difficult decisions in a crisis without guidance.
- Legal authority is in place for someone to communicate with doctors and make urgent choices.
Why Every Adult Needs These Documents
Whether you’re 30 or 80, own a business or not, powers of attorney and advance directives are essential because:
- Medical emergencies happen without warning.
- Without them, your loved ones may need to go to court to gain authority to act on your behalf.
- Financial and healthcare systems will not disclose information or accept instructions from anyone who isn’t legally authorized.
Business Owners: Don’t Overlook Operational Continuity
If you run a business, the absence of a power of attorney could leave your team without access to:
- Payroll systems
- Business bank accounts
- Vendor payments or contracts
A customized POA can authorize a trusted partner, manager, or family member to handle day-to-day operations until you’re able to return—or as part of your broader succession plan.
Final Thoughts
Powers of attorney and advance directives are not just paperwork—they are powerful safeguards. With them, you stay in control of your future and protect your family and business from unnecessary legal complications.
Need help drafting a personalized power of attorney or healthcare directive? Contact our firm to get started with a free consultation.