Written by Benjamin Kingsley
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.
While a power of attorney is a common and versatile estate planning tool, there are several alternatives that can serve similar purposes in different situations:
1. Guardianship and Conservatorship: These are court-appointed roles that can be established when an individual is deemed incapacitated and unable to make decisions for themselves. A guardian is typically responsible for personal and healthcare decisions, while a conservator manages financial affairs. Unlike a power of attorney, which is voluntarily established, guardianships and conservatorships require court intervention and ongoing supervision. They offer a higher level of protection but come with less flexibility and higher costs.
2. Trusts: A well-drafted trust can serve as an alternative to a power of attorney, particularly for financial matters. A revocable living trust allows the grantor to maintain control of their assets while they are capable, and seamlessly transitions management to a successor trustee if the grantor becomes incapacitated. Trusts offer the added benefits of probate avoidance and potential tax advantages. However, they require more upfront effort and cost to establish and maintain compared to a power of attorney.
3. Joint Accounts and Property Ownership: For married couples or those in close relationships, joint ownership of accounts and property can provide a simple alternative to a power of attorney. With joint accounts, either owner can access and manage the funds without additional legal documentation. Similarly, property held in joint tenancy with rights of survivorship allows either owner to make decisions about the property. While this approach is straightforward, it does not cover all situations a power of attorney would and may have unintended consequences for estate distribution and tax planning.
Do you have questions about or need assistance with a power of attorney? Please click here to email us at contact@legalandme.com.
Do you need a power of attorney form? We make a do-it-yourself power of attorney: finance power of attorney or healthcare power of attorney.