Thinking about what would happen to your finances if you were suddenly unable to manage them is not exactly a pleasant way to spend an afternoon. Even scarier still, it is one of those quiet, responsible steps that can prevent chaos later. A Power of Attorney is one of the most practical estate planning tools available because it allows someone you trust to step in and handle financial matters if you cannot. When done correctly, it offers protection, flexibility, and peace of mind all at once.

A Power of Attorney is a legal document that gives another person, known as your agent, the authority to act on your behalf. This authority can be broad or limited, temporary or long-term, depending on how the document is drafted. The main benefit is that it keeps your finances moving smoothly during periods of incapacity, travel, or serious illness, rather than leaving matters stuck in limbo. Read on and reach out to the knowledgeable New Jersey estate planning lawyers at Laddey Clark & Ryan, LLP to learn more.

What exactly does a Power of Attorney allow someone to do?

A properly drafted Power of Attorney can cover a wide range of financial responsibilities. This flexibility is what makes it such a powerful planning tool. Common financial powers often include the following:

  • Paying routine bills, including utilities, rent, or mortgage payments
  • Managing bank accounts and handling deposits or withdrawals
  • Overseeing investments, retirement accounts, and insurance matters
  • Filing state and federal tax returns on your behalf
  • Buying, selling, or refinancing real estate when necessary

Because these powers can be customized, you stay in control of how much authority your agent receives. Some people choose to grant immediate authority for convenience, while others prefer a springing Power of Attorney that only becomes effective if incapacity is confirmed.

How does a Power of Attorney help if I become incapacitated?

One of the biggest financial risks people face is the possibility of becoming temporarily or permanently unable to manage their own affairs. Without a Power of Attorney in place, your loved ones may be forced to go to court to request guardianship. That process can be expensive and time-consuming. A Power of Attorney helps avoid this outcome by:

  • Allowing immediate access to funds needed for care and daily expenses
  • Preventing missed payments that could harm credit or lead to foreclosure
  • Eliminating delays caused by court approval or legal disputes
  • Reducing stress for family members during already difficult times

In short, it keeps financial decisions private and efficient, rather than placing them under court supervision.

Why should an estate planning lawyer draft my Power of Attorney?

Online templates may look tempting, but financial authority is not something that should be handled casually. New Jersey has specific legal requirements that must be met for a Power of Attorney to be valid and enforceable. Banks and financial institutions can, and often do, reject poorly drafted documents.

A lawyer can also help you think through real-world scenarios that generic forms rarely address, such as blended families, business ownership, or long-term care planning.

If you have additional questions or would like to speak with an estate planning lawyer about drafting a Power of Attorney, please don’t hesitate to contact Laddey Clark & Ryan, LLP today.