There’s a common misconception that estate planning is only for parents passing down wealth to the next generation, or for high-net-worth individuals wanting to direct assets to a cause. But what happens if you don’t have a spouse or children, or the traditional next-of-kin who would step in to help in a crisis?
For singles or childless couples, the law doesn’t automatically know who to turn to if you become temporarily or permanently incapacitated. That’s why a medical and financial Power of Attorney (POA) isn’t just a legal formality, it’s the only way to prevent the state from appointing a stranger to manage your life.
The Default Trap: What Happens If You Do Nothing?
While most states have default “surrogate decision-maker” laws, they were typically designed for traditional nuclear families. If you are unable to make decisions for yourself and you haven’t named a POA, a judge will appoint a guardian for medical care and a conservator for financial control.
This is a public, often costly, and potentially drawn out process of weeks or months, during which your bills may go unpaid and your medical choices could be in a state of limbo. Typically, the court seeks out biological relatives first, which could mean an estranged sibling or distant family member who may not be your preference when making life or death decisions.
Without estate planning documents, the state will always prioritize bloodlines over friendship bonds. Your closest friends, lifelong partners (if unmarried), or trusted mentors will have absolutely no legal right to see medical records, weigh in on decisions, or protect your assets.
The Financial Power of Attorney: Protecting Your Livelihood
A Financial POA grants a trusted person, referred to as your “agent,” the authority to manage your business and personal finances if you are incapacitated. Your agent will be authorized to pay your mortgage or rent, manage utilities, and handle insurance claims so that you don’t face eviction or lapses in coverage.
This also extends to managing any digital assets, tax filings, and managing any investments or retirement accounts. If you have pets, your financial agent can ensure funds are directed to their care, veterinary bills, or temporary boarding.
The Medical Power of Attorney & Living Will: Protecting Your Voice
A Healthcare Proxy or Medical POA ensures that your medical treatment aligns with your personal values. Your designated agent can talk to your doctors, access your medical records, and make tough decisions about surgeries, medications, and hospital transfers.
Additionally, the creation of a Living Will, or Medical Directive, goes hand-in-hand with a Medical POA to outline your exact preferences regarding end-of-life care, life support, and pain management, taking the emotional guesswork away from your agent.
Choosing Your Agent When You Don’t Have a Spouse or Child
Ultimately, the person you select to be your agent should be someone you trust. But finding the right person can feel daunting when you don’t use the traditional default options. Consider these options:
- Trusted Friends or Siblings: Look for someone who is organized, calm under pressure, and shares or respects your values.
- Professional Fiduciaries: If you don’t have a close friend or relative capable of the role, you can hire a professional fiduciary, trust company, or licensed care manager to act as your agent for a fee.
Finally, you don’t have to pick the same person for both roles. A fiercely organized friend might be a great Financial POA, while a calm, empathetic friend might be the ideal Medical POA.
Wills & Wellness can help you create medical and financial powers of attorney.
Our estate planning process includes all of the necessary documents beyond the standard will and trust. We develop a comprehensive estate plan that ensures you and your finances are protected.