When it comes to a power of attorney document, you don’t seem to need it – until you suddenly, desperately do.
Designating a power of attorney is crucial to creating a strong financial plan, but you might be surprised to learn many experts recommend that this power be named as soon as individuals turn 18 years old.
Power of attorney allows a third party, known as the attorney-in-fact or the agent, to make financial, legal and sometimes health decisions on someone’s behalf. Without a power of attorney, loved ones can be rendered unable to manage the health care decisions and finances of any adult who is unable to do so themselves – whether that individual is a 19-year-old car accident victim or a 90-year-old needing nursing home care.
“From the moment you turn 18, you need this,” says Jennifer D. Taddeo, estate planning attorney and partner at Conn Kavanaugh in Boston. “It’s my 18-year-olds who are the most upset when they learn about this, because they assume mom and dad would be able to step in and make those decisions, but that’s not the case. They have no legal authority the moment that child turns 18.”
