What Happens If You Don’t Have a Durable Power of Attorney?

Planning for the unexpected is an essential part of protecting yourself and your loved ones. One crucial legal document many overlook is the durable power of attorney (DPOA). This document empowers a trusted person to make decisions on your behalf if you become incapacitated.

But what happens if you don’t have a durable power of attorney? The consequences can be significant, ranging from financial problems to delays in critical medical care. Below, we’ll explore why a DPOA is so important and what risks you face without one.

Jump to article sections:

1. Durable Power Overview
2. Why Is a Durable Power of Attorney Important?
3. What Happens If You Don’t Have a Durable Power of Attorney?
4. Who Makes Decisions If You Don’t Have a Durable Power of Attorney?
5. Financial Implications of Not Having a Durable Power of Attorney
6. Medical Decisions Without a Durable Power of Attorney
7. How to Avoid the Risks of Not Having a Durable Power of Attorney
8. Setting Up a DPOA with Margerie Law

1. Durable Power Overview

A durable power of attorney is a legal tool that lets you, as the “principal,” authorize another person, known as the “agent,” to make decisions and act on your behalf. Its durability means it continues to be valid even if you lose the ability to make decisions due to mental or physical incapacity.

This document can grant authority over various responsibilities, including financial management and healthcare choices. Unlike a general power of attorney, which becomes invalid if you’re incapacitated, a durable power of attorney is specifically created to support you in such situations.

2. Why Is a Durable Power of Attorney Important?

A durable power of attorney is vital because life is unpredictable. Sudden accidents, illnesses, or decline in health can leave you unable to manage your affairs. Without a DPOA, things can quickly spiral into legal and financial chaos.

While DPOAs are helpful for aging parents and elderly, they’re also essential for adults of all ages. For example, if you run a business or own property, it’s important to have someone designated to manage your affairs in case you become incapacitated.

Additionally, a DPOA can provide peace of mind for individuals with chronic health conditions or disabilities. Knowing that there is someone who can handle their financial and legal matters can alleviate stress and allow them to focus on their health and well-being.

3. What Happens If You Don’t Have a Durable Power of Attorney?

If you don’t have a durable power of attorney, you lose the ability to appoint someone you trust to act on your behalf if you become incapacitated. This can lead to serious consequences, such as:

• Legal Complications: Without a DPOA, a court must step in to appoint someone to manage your affairs. This process, known as guardianship or conservatorship, can take months and may involve legal fees.
• Delay in Decision-Making: Financial and medical decisions may be delayed until the courts decide, potentially putting your health or assets at risk.
• Added Stress for Loved Ones: Your family may struggle to determine the best course of action or may disagree on key decisions, leading to conflicts at an already stressful time.

4. Who Makes Decisions If You Don’t Have a Durable Power of Attorney?

Without a DPOA, the responsibility for making decisions often falls to the courts, which can appoint a guardian or conservator. While this may sound like a straightforward solution, the reality can be far more complicated.

The court-appointed guardian might not be the person you would have chosen. Worse, they could be a professional or stranger with little knowledge of your values and wishes. The process can also lead to additional stress for your family, not to mention the expense and time involved in obtaining court approval.

5. Financial Implications of Not Having a Durable Power of Attorney

Managing financial matters without a DPOA can be a nightmare. If you become incapacitated, your loved ones may find it difficult to access your bank accounts, pay bills, or manage investments. Some key risks include:

• Frozen Accounts: Without a legal representative, financial institutions may refuse access to your accounts until a court orders otherwise. Meanwhile, bills can go unpaid, and important investments may be neglected.
• Property at Risk: Mortgages, property taxes, and other financial obligations could go unmet, potentially leading to foreclosures or penalties.
• Additional Costs: Your family may incur significant legal fees to resolve these challenges, further complicating an already stressful situation.

6. Medical Decisions Without a Durable Power of Attorney

Your health is one of the most critical areas affected by the lack of a DPOA. Without it, there’s no clear person authorized to make medical decisions on your behalf if you’re incapacitated. This can create several problems:

• Conflicts Among Family Members: Without clear instructions, your loved ones may disagree on your care, leading to disputes and delays.
• Delayed Treatment: Essential medical interventions could be postponed while healthcare providers wait for legal clarity.
• Risk of Unwanted Treatment: Without your wishes documented, doctors might make decisions that go against what you would want.

A DPOA tailored to include healthcare decisions (sometimes referred to as a healthcare power of attorney) can help you avoid these issues by ensuring your healthcare preferences are honored.

7. How to Avoid the Risks of Not Having a Durable Power of Attorney

Fortunately, you can take steps to protect yourself and your family from the risks outlined above. Here’s how:

1. Create a DPOA: Work with an estate planning attorney to draft a durable power of attorney tailored to your needs.
2. Choose the Right Agent: Select someone you trust implicitly, such as a family member or close friend, who will act in your best interests.
3. Discuss Your Wishes: Talk openly with your chosen agent about your values and preferences regarding financial and medical decisions.
4. Review Regularly: Update your DPOA periodically to account for changes in your life, such as marriage, divorce, or changes in your health.

By setting up a DPOA, you not only protect your financial and medical well-being but also give your loved ones the guidance and peace of mind they need during difficult times.

8. Setting Up a DPOA with Margerie Law

Not having a durable power of attorney can lead to complex legal battles, financial troubles, and health care delays that could otherwise be avoided. A DPOA is more than a legal document; it’s a vital safety net that protects you and your family when the unexpected happens.

Don’t wait until it’s too late. If you are in the Milwaukee area and need assistance from a trusted Wauwatosa estate planning attorney, look no further than Margerie Law. At Margerie Law in Wauwatosa, we understand the importance of having a solid estate plan in place and we are dedicated to helping you navigate the legal complexities surrounding it. Contact us today for a free consultation!

By Paul Margerie, Owner of Margerie Law

Paul Margerie of Margerie Law is a knowledgeable and experienced estate planning attorney based in Wauwatosa, WI. With years of experience helping families and individuals with their estate plans, he offers a gentle touch that puts his clients at ease. He understands the sensitive nature of this work and ensures that all details are taken care of with precision and accuracy. He strives to help each client achieve peace of mind that their future is protected by providing personalized advice and creating tailor-made solutions that fit their individual needs.