Crucial Insights: Will Vs. Power Of Attorney

Estate PlanningWillsPlanning for FamiliesPower of Attorney
Written By Andrea Lauritzen

When planning for the future, people often ask: "Do I need a Will or a power of attorney?"

The answer is simple: both—because they do very different things and serve different purposes in your comprehensive estate plan.

Understanding the Difference: A Real-Life Example

Take Pat, for example. Pat thought having her Will done would cover everything, so she never established a power of attorney. When Pat had a medical emergency and couldn't manage her finances, her family was stuck. They couldn't access her accounts or pay her bills without a lot of legal red tape. It was stressful, and it took time they didn't have—time that could have been better spent focusing on Pat's recovery.

This common scenario illustrates why having both documents is crucial for complete protection.

The Estate Planning Process: Essential Documents

Let's break down how these two vital documents work together as part of your comprehensive estate plan:

Step 1: Understanding Your Will

A Will explains what happens after you pass away. It covers essential matters such as:

  • Who receives your assets and property

  • How your personal belongings are divided

  • Who serves as your personal representative (or executor) to finalize everything—like paying debts or transferring property

  • Who steps in as the guardian of your minor children (if applicable)

Important limitations to understand:

  • Wills only take effect after you're gone

  • They typically must go through probate

  • They provide no protection during periods of incapacity while you're still alive

Step 2: Establishing Powers of Attorney

Powers of attorney (POAs) work when you're alive but unable to make decisions. They allow someone you trust to act on your behalf.

Financial Power of Attorney

  • Manage bank accounts and investments

  • Pay bills and handle tax matters

  • Apply for benefits on your behalf

  • Manage real estate and other property

Healthcare Power of Attorney

  • Make medical decisions if you can't communicate

  • Access your medical records

  • Consult with your healthcare providers

  • Ensure your treatment preferences are followed

Crucial detail: Without these documents, even your spouse or adult children may face legal barriers to helping you during a crisis.

Step 3: Creating Both Documents

For complete protection, you need both types of documents working together:

  • Your Will protects your wishes after death

  • Your powers of attorney protect you during life

  • Together, they create a seamless system of protection across different life circumstances

Step 4: Regular Review and Updates

Like all estate planning documents, your Will and powers of attorney should be reviewed regularly:

  • After major life events (marriage, divorce, births, deaths)

  • When moving to a different state

  • Every 3-5 years to ensure they still reflect your wishes

  • When laws change that might affect your documents

Why Having Both Is Essential

In Pat's case, having both documents would have saved her family significant stress, time, and money. If Pat had her power of attorney in place (not just a Will), her bills could have been handled right away, and her family wouldn't have had to worry about jumping through legal hoops during an already difficult time.

Without a power of attorney, your loved ones may face these common challenges:

  • Inability to access funds to pay for your care

  • Court proceedings to establish guardianship (expensive and time-consuming)

  • Delays in medical decision-making during critical periods

  • Potential conflicts among family members about what you would have wanted

Taking the First Step

Having just a Will or just a power of attorney creates dangerous gaps in your protection. A comprehensive estate plan should include both types of documents to ensure you're protected during every phase of life—whether you're healthy, incapacitated, or after you've passed away.

Estate planning is a collaborative process, and your input is essential to creating documents that truly reflect your wishes. I'm here to guide you through each step with clarity and compassion.

Schedule Your Consultation today and take the first step toward creating a complete estate plan that protects what matters most to you and your loved ones.

Helpful Resources

These trusted resources provide additional information about Wills and powers of attorney:

Andrea Lauritzen
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