Power of attorney documents help prepare for times of crisis.
Six years ago, the majority of Americans were navigating lockdowns and other challenges related to COVID-19.
Remember that?
Some individuals were prepared for the challenges related to medical concerns.
Others took quick action to get their power of attorney documents in order.
According to a recent MarketWatch article titled “Nearly 90% of American adults are vulnerable because they are missing this key document,” many people took no steps toward creating key legal documents.
In fact, about 9 in 10 Americans do not have power of attorney documents in place to protect them during a crisis.
Death is inevitable for all humans.
Although your chances of dying are 100 percent, your likelihood of incapacity after age 65 is 70 percent.
With those odds, it is best to be prepared with a last will and testament, powers of attorney, and possibly a trust.
Despite these numbers, only 26 percent of adults have a last will and testament.
The number is down from 31 percent last year.
Yikes!
Why is a last will important?
It is the basic estate planning document that grants legal authority to your wishes regarding your estate executor and the distribution of your "probate" assets after you die.
Although trusts are not necessary for all estate planning needs and goals, one need not be wealthy to benefit from these instruments.
Trusts can be helpful in keeping assets out of probate or providing structure for complicated property or family dynamics.
Power of attorney instruments are useful for incapacity planning in the case of debilitating illness or injury.
The power of attorney is key to protecting you and your interests while you are alive.
By creating this document with an experienced estate planning attorney, your loved ones will be able to provide support to you while bypassing costly and slow court proceedings for guardianship or conservatorship appointments.
With a "durable" power of attorney, you can select a person to manage your financial affairs if you cannot as a result of illness or injury.
By appointing a trusted agent, you can ensure your bills are paid, your investments are managed effectively, and your tax returns are filed on time.
No, "incapacity" is not a valid excuse to avoid filing your tax return.
A health care power of attorney allows you to designate someone to speak with your physicians and make medical decisions on your behalf.
To support the agent you named in your health care power of attorney, you should also sign HIPAA authorizations.
With a HIPAA authorization, you will enable your representatives to access your medical records, communicate with insurance companies, and talk with your doctor.
As with all estate planning documents, it is important to provide HIPAA authorization for multiple people in case your primary choice is unavailable.
Again, these documents are essential for loved ones to be able to talk with your medical team if you are incapacitated.
An experienced estate planning attorney can set you up with the full range of documents you need to protect you and your loved ones.
Comprehensive estate planning includes power of attorney documents in addition to a last will and testament or trust.
Powers of attorney should be used to designate agents to handle financial matters and make medical decisions if you are incapacitated.
HIPAA authorizations work in conjunction with a health care power of attorney so your loved ones can access medical records, work with insurance, and talk with physicians.
Working with an experienced estate planning attorney to create these legal instruments provides protection and peace of mind.
This post is for informational purposes only and does not provide legal advice. You should consult an attorney for advice on any specific issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.
Reference: MarketWatch (April 14, 2026) “Nearly 90% of American adults are vulnerable because they are missing this key document”
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