Durable Power of Attorney is used to authorize a person to make legal decisions for you about finances and health care. The “durable” part keeps the powers in place until death; allow the agent to carry out tasks such as paying bills, making deposits, filing tax returns, or obtaining medical records.

Without a durable power of attorney, the relative will not have a say in medical or financial decisions. To handle matters, they have to go to court to appoint a person as proxy and obtain permission to act on their behalf. Not only is this inconvenient, it adds to the burden of dealing with the looming crisis. This can be seen by creating medical and financial POA forms.

The easiest way to execute these documents is by hiring an attorney. Other options include using legal service providers like LegalZoom or purchasing DIY kits from the Internet or office supply stores.

A financial POA is recommended for everyone who has some type of personal finance issue. This document gives the designated attorney-in-fact permission to pay the bills; make deposits in bank accounts, financial portfolios and retirement accounts; file tax returns; and participate in specific transactions documented on the POA form.

Medical Power of Attorney forms allow individuals to indicate what types of health care procedures they do or do not wish to receive if a life-threatening event occurs. Some states require individuals to execute a living will rather than a medical POA, so it is best to obtain legal advice to determine the appropriate forms.

Health care directives must include a consent form to release medical records to attorney-in-fact. Confidentiality laws prohibit medical personnel from disclosing personal health information to others without proper consent.

For most people, the logical choice of proxy is family members. It is important to realize that your chosen person will have access to confidential financial and medical information, so choosing wisely is critical. Instead of a family member, the agent can also be a financial planner, an attorney, or a personal friend.

In most situations, it is advisable to appoint a proxy for the durable financial and medical power of attorney. While not required, having a person in charge can be more efficient. If this is not feasible, it is best to appoint two people who are able to work well together.

Establishing a POA is also an important estate planning strategy. One of the most valuable gifts anyone can give their family is making sure their affairs are in order. Arranging the estate of your loved ones can be a complicated issue if the directives are not provided in a last will and testament.

Writing a will helps speed up the probate process used in the US to settle estates for the deceased. Wills are needed to ensure that loved ones receive the inheritance property that you want them to have. They are also used to establish guardianship of minor children and appoint a personal representative to manage property matters.

Both wills and durable powers of attorney give authority to those charged with specific duties and help facilitate their work. For a nominal fee and a few hours of time, these documents provide the peace of mind of knowing that everything is in order should the unthinkable happen.