Sunday, February 13, 2011
Estate Planning: Why your power of attorney is like a spare set of keys.
This is a true story. About five years ago, I was renting a room from my buddy in his Dilworth townhouse. I was about to leave one evening to have dinner with some friends, and my roommate was walking out the door at the same time to walk across the street for a cup of Starbucks coffee. As he walked out the door, he said to me, "Whatever you do, make sure to lock the door" - at least that is what I heard. What he actually said was, "Whatever you do, DON'T lock the door.” The distinction was crucial because my buddy had an exam he was studying for and did not have his keys to get back in the house.
Long story short, I left, locked the door, and did not have my cell phone on. So there my poor roommate sat, outside his own house without his books and without a way to get in. In order to get back into the house, he had to hire a locksmith (not cheap), who had to basically break into the house and make a new key. If only he had a spare key with a trusted friend or family member around (other than his roommate who left him keyless).
This story is a great illustration of why powers of attorney are so important. A power of attorney gives someone access to your ability to make financial or health care decisions on your behalf, just as a spare key gives a trusted person access to your house if you ever get locked out. If you do not have a properly executed power of attorney, then it becomes necessary to go through the guardianship process, which is expensive and time consuming, just like having to hire a locksmith to get into your locked home. If, however, you have taken the time to execute health care and financial powers of attorney, then, if you are ever not able to make decisions for yourself, you can have the peace of mind knowing that a friend or loved will be there to watch over your affairs.
RYAN W. MONK, licensed in NC & SC
ryan.monk@franklegal.com