Adults who are no longer able to handle their finances or make healthcare decisions for themselves are set up for “living probate,” which refers to a guardianship or conservatorship.

In simpler terms, you want to avoid guardianship for the same reason you want to avoid probate. The real situation you want to prevent while you are still alive is anything that’s going to start the probate process early.  So if you become incapacitated and cannot handle your finances or make good health care decisions for yourself – who has the authority to make these decisions on your behalf?  Do you want a court to make these decisions?  Or would you decide on your own?

If you do not already have a comprehensive estate plan, you can end up in probate court, subject to guardianship proceedings–While You Are Still Alive. Guardianship is essentially a “living probate.” Just like probate after death, it is a public process to appoint a person to look after your affairs, and you do not get any say in the matter.

So, how can you avoid such a situation? By creating a comprehensive estate plan that includes “Powers of Attorney” for your finances, property and healthcare. You appoint the person you want to handle these matters, not a probate court judge.

 

What’s a Power of Attorney?

A Power of Attorney (POA) is a legal document that lets you name someone you trust to handle things on your behalf—like paying your bills, managing your property, or talking to your insurance company—if you can’t do it yourself. This person is called your “agent” or “attorney-in-fact.”

POAs can be:

General – giving broad powers to act on your behalf.
Limited – authorizing specific actions or applying for a certain time period.

There’s also a Health Care Proxy (sometimes called a medical POA), which lets someone make medical decisions for you if you’re unable to speak for yourself.

 

More Than Just a Signature – How to Decide Who Is The Best Fit For Your Powers Of Attorney While You Are Still Alive

When you sign a POA, you’re giving someone the keys to your financial or medical life—so you want to pick that person carefully. Here are a few things to think about:

Do they live nearby in case of emergencies?

Are they capable of handling paperwork and talking to professionals?

Do you trust them 100% to act in your best interest?

 

Why the Right Wording Matters

Not all POAs are created equal. You can find templates online, but many of them are too vague—or sometimes too specific. That might work fine in theory, but in real life, banks, hospitals, or real estate offices might reject a POA that doesn’t include the exact language they want to see.

I have heard plenty of horror stories where a loved one thought they were prepared, only to be told their POA wasn’t valid for a crucial transaction. That’s why having a properly written POA—customized for your situation—is one of the best gifts you can give yourself and your family.

 

Bottom Line

If you want to avoid the stress and expense of living probate, a solid Power of Attorney and Health Care Proxy should be at the top of your estate planning to-do list. It’s a simple step that can save your loved ones from a legal headache down the road. If you work with us, your comprehensive estate plan will include POAs for both finances and healthcare–so your plan will protect you from day one, and you will never have to worry about living probate.

If you’re not sure where to start or want to review what you already have, we’re happy to help. Give us a call and let’s make sure your plan covers everything—not just what happens after you’re gone.