Including a power of attorney in your estate plan can help you take care of your financial and legal affairs in the event of incapacity or an inability to make decisions.
Learn more about the benefits of having a power of attorney in Maryland.
Definition of power of attorney
A power of attorney is a legal document that grants authority to another person, known as the agent or attorney-in-fact, to act on your behalf in various financial and legal matters if you are absent or incapacitated. By granting this authority, you ensure that your agent handles your affairs according to your wishes and best interests.
The person you appoint as your agent can perform tasks such as bill payments, investment management, healthcare decision-making and real estate transactions on your behalf.
Types of power of attorney in Maryland
Maryland recognizes various types of power of attorney that you can include in your estate plan.
- A general power of attorney provides broad authority to the agent, enabling them to handle various financial and legal matters on your behalf
- A limited power of attorney grants specific authority for a particular purpose and duration
- A healthcare power of attorney allows you to designate someone to make healthcare decisions on your behalf if you are unable to do so
Understanding these options helps you choose the one that works best for you.
Benefits of power of attorney in your estate plan
Having a power of attorney in your estate plan ensures continuity in managing your financial and legal affairs during your absence or incapacity. It also allows you to choose a trusted individual who understands your wishes and values to act on your behalf, so that decisions align with your preferences.
Additionally, having a power of attorney in place may help you avoid the need for guardianship proceedings if incapacity arises, saving time and costs.
Incorporating a power of attorney into your Maryland estate plan is essential for safeguarding your financial and legal interests. It will help you make informed decisions that provide peace of mind for you and your loved ones.