Power of Attorney, and Mistakes That Could Cost You Dearly

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If medical complications leave you incapable of making decisions, a power of attorney (POA) will delegate legal authority to someone else to make them for you. That individual (the agent) can then make decisions for you (the principal) that include legal, financial, medical, and business matters.

Why You Need a Power of Attorney Document

Before anything causes you to become unable to make decisions for yourself, appoint someone you trust to handle your affairs in case the unforeseen happens.

There is another reason to give power of attorney to someone: that person may have expertise in an area you do not possess, says LegalNature. An example would be when you need advice on legal matters.

Consequences of Not Designating a POA

If you become incapacitated without a POA, your loved ones might not be able to access your finances. Your bills might go unpaid, or your family might need to scramble to meet immediate financial needs.