By Jeremy A. Wechsler, Esq.
Investment Advisor Representative
[email protected]
I will never forget a call I received when I was still practicing law full time. It was during COVID, so we are going back a bit (funny how time flies!). A prospective client (we’ll call her Sue) was panicked, as her husband was entering a nursing home. Will she have to spend all the money down? Will the house get taken? After dispelling some myths (no, the house won’t get taken), I asked her a few questions. First, does her husband have an IRA or retirement account? (Yes.) Second, does he have a Power of Attorney (POA)? (No.) The conundrum in this case was that even though Sue was the spouse, she did not have access to her husband’s IRA money without a Power of Attorney. Unfortunately, the husband’s IRA would be precisely what we would be trying to partially shelter from long-term care costs, but without the husband having done a POA, we were unable to legally move any of those funds.
Unlike a will—which only takes effect after death—a POA works during life. It allows someone you trust to act on your behalf if you’re ever unable to make decisions yourself, even temporarily. A POA can be more important than a will in a number of cases. Unfortunately, I have seen in my years many folks who have a will, but no POA.
There are two key types:
- Durable Financial POA – Allows your chosen agent to handle day-to-day matters like paying bills, managing accounts, or signing documents.
- Healthcare POA & Living Will – Gives someone the ability to speak with your doctors and make medical decisions if you’re unable to, and helps guide your agent for end-of-life care.
Having these in place can prevent a lot of unnecessary stress. Without them, your loved ones might have to go to court to be appointed as your legal guardian—a process that’s time-consuming, expensive, and emotionally draining at an already difficult time.
The beauty of a POA is in its simplicity.
It’s a straightforward document, but it carries incredible power. It’s not about giving up control—it’s about creating a plan for the people you love, so they can step in smoothly if ever needed.
If there’s one thing I’ve learned over the years, it’s this:
Planning ahead doesn’t have to be complicated. A POA is one of the simplest, most thoughtful gifts you can give your family—and yourself. Like Sue, any of us could suddenly face a long-term care need—and find ourselves unprepared. With a POA in place, your agent can take steps to protect your assets and help preserve the legacy you’ve worked so hard to build.
Make sure, if you don’t have a POA, or you have a very old POA, that you get this done before the end of the year. Your future self will thank you!