Most people think about estate planning in terms of what happens after death. The will, the trust, and the beneficiary designations all deal with transferring assets to the right people when someone passes away. What fewer people consider is what happens while they’re still alive but unable to manage their own affairs. A sudden illness, a serious accident, or a period of cognitive decline can leave family members unable to take necessary financial or medical steps without court involvement unless the right documents are already in place.
Powers of attorney are the documents that address this gap. Washington residents who build a complete estate plan include them for this reason.
What a Durable Financial Power of Attorney Does
A durable financial power of attorney designates someone, called the agent or attorney-in-fact, to manage financial matters on behalf of the person who created the document, called the principal. Under RCW 11.125, Washington’s Uniform Power of Attorney Act, an agent can be authorized to handle banking transactions, pay bills, manage investments, file taxes, manage real property, and handle business matters depending on the scope of the document.
The word “durable” is important. A standard power of attorney becomes void if the principal becomes incapacitated. A durable power of attorney remains effective precisely during incapacity, which is when it’s most needed. Without this document, a spouse or adult child who needs to access accounts, pay the mortgage, or manage investments may be unable to do so without going through the court system to be appointed as a guardian or conservator.
A Bothell estate planning lawyer can draft a durable financial power of attorney tailored to your situation, specifying exactly what powers the agent has and any limitations you want to place on their authority.
What a Healthcare Power of Attorney Does
A healthcare power of attorney, sometimes called a healthcare proxy, designates someone to make medical decisions on the principal’s behalf when they are unable to make or communicate those decisions themselves. Washington recognizes this document under RCW 70.122.
The healthcare agent can consent to or refuse medical treatment, access medical records, communicate with providers, and make decisions about care settings. Without this document, healthcare providers may not have a clear legal authority to follow guidance from a family member, even a spouse, in all circumstances.
A healthcare power of attorney is separate from a healthcare directive or living will, which states the principal’s wishes directly. The two documents work together. The directive expresses preferences; the power of attorney designates someone to act when circumstances arise that the directive doesn’t address specifically.
Choosing the Right Agent
The agent named in each document carries significant responsibility. For financial matters, the agent should be someone who is organized, trustworthy, and capable of managing financial decisions that may be complex. For healthcare matters, the agent should be someone who understands your values, can communicate clearly under pressure, and will advocate for your actual wishes rather than their own preferences.
Naming a successor agent in each document provides a backup in case the primary agent is unavailable, unwilling, or no longer capable of serving.
Why These Documents Belong in Every Plan
Eastside Estate Planning includes powers of attorney as part of every complete estate plan because the need for them can arise at any age and without warning. A plan that covers only what happens at death leaves a significant gap in protection for Washington families.
If you are building or updating your estate plan in the Bothell area and want to make sure your family is protected both during life and after, speaking with a Bothell estate planning lawyer is the right place to start. The conversation is straightforward, and having these documents in place provides real security.
