Estate planning involves the development of strategies to protect your interests during your lifetime, as well as to ensure the smooth transition of assets and protection of loved ones after you pass away. One crucial tool to safeguard your financial and physical health in case of emergency is the durable power of attorney. 

A durable power of attorney ensures that your affairs, both financial and personal, are managed according to your wishes if you become incapacitated. At Inhulsen Law in Grand Rapids, Michigan, we believe in empowering our clients with comprehensive knowledge about this vital legal tool and how it can be used in specific situations. For general background purposes, it is helpful to understand what durable power of attorney does and why it’s an essential part of your estate planning.

What is a Durable Power of Attorney? 

A power of attorney is a legal document that allows you to appoint someone you trust to make decisions on your behalf. The document shares your authority with others–unlike guardianship, you do not lose your own authority to make decisions, you simply authorize an additional person to act for you. 

Traditionally, a standard power of attorney turned invalid if the person who executed it became incapacitated, which was the time when the document was needed most. Therefore, we create durable powers of attorney which are designed to remain in effect regardless of incapacity, ensuring continuous management of your affairs. 

Generally, people execute two types of durable powers of attorney: a financial power of attorney and a health care power of attorney. 

A financial power of attorney authorizes an agent to manage financial affairs, and it can take effect immediately on creation or be drafted to only spring into action when a triggering event occurs, such as if and when the person who created it becomes incapacitated and incapable of managing their own financial business. 

A health care power of attorney generally only takes effect when the person who created it becomes incapacitated. This document authorizes an advocate to make medical decisions on behalf of the creator.  

Why Durable Powers of Attorney are So Essential  

If an accident or illness should put you in a coma or cause you to be unable to manage your affairs, your loved ones might be powerless to help you if you don’t have the right planning documents prepared. Your bills might go unpaid, ruining your credit and leading to the loss of your home and other assets. Critical health care treatment might be delayed or not provided in accordance with your wishes. 

Having powers of attorney prepared ensures that your affairs will be managed as you would want, protecting your interests during difficult times. Durable powers of attorney are key components of a comprehensive estate plan, along with wills, trusts, and other estate planning tools.

Choosing Your Agent in Michigan 

Selecting the right person to serve as your agent under a durable power of attorney is a significant decision. This individual will have considerable control over your affairs, so it’s crucial to choose someone who is trustworthy, reliable, and capable of handling the responsibilities. Our team can review the responsibilities of the position with you and help you determine your best candidates. 

For a financial agent, we might recommend considering factors such as the person’s financial acumen and integrity. Your financial agent may be given access to and power over all of your financial holdings, depending on the way your power of attorney is structured, and this is a tremendous responsibility. For a health care agent, you might want to consider your candidate’s proximity to you, and their understanding of your values and wishes.

The Legal Process of Establishing a Durable Power of Attorney in Michigan 

Establishing a durable power of attorney in Michigan involves carefully creating legal documents that meet specific state requirements and regulations and that convey precisely the amount of authority you intend to grant. With a financial power of attorney, you can limit the scope and duration of the power as you see fit, but the document must reflect those limitations. 

At Inhulsen Law, we work closely with our clients through each detailed step of this process, ensuring that the power of attorney documents accurately reflect their personal wishes and fully comply with all relevant Michigan laws.

Revocation and Amendments 

It’s important to understand that you have the right to revoke or amend your durable powers of attorney at any time, as long as you are mentally competent. This flexibility allows you to make adjustments as your life circumstances change. We recommend reviewing your powers of attorney periodically and updating the documents as needed.

Contact Inhulsen Law to Protect Yourself with the Right Powers of Attorney

If you’re considering adding durable powers of attorney to your estate plan, or if you have any questions about establishing or revising estate plans in Michigan, the legal team at Inhulsen Law is here to help. Contact us today to schedule an initial consultation through our online form or by calling (616) 747-0000. We look forward to helping you ensure your estate plans are comprehensive and tailored to your needs.