Why Everyone Over 40 Needs a Power of Attorney (and What Happens If You Don’t Have One)

Most people don't think about a power of attorney (POA) until something happens that makes them realize they need one. A sudden illness, an accident, or an unexpected crisis can leave

someone unable to make decisions for themselves. Not having a POA in place can create serious legal and financial challenges when that happens. Anyone over 40 needs a Power of Attorney to protect themselves, their family, and their assets before life takes an unexpected turn.

What Is a Power of Attorney?

A power of attorney is a legal document that allows someone you trust to make decisions on your behalf if you become unable to do so. There are different types of POAs, but the two most important ones for most adults are financial and healthcare POAs. A financial POA gives a trusted family member or friend the authority to handle banking, pay bills, and manage assets, while a healthcare POA allows a trusted friend or family member to make medical decisions if you are incapacitated. Without these documents in place, decisions about your health and finances could be left in the hands of a court rather than someone you trust.

Why Everyone Over 40 Needs a Power of Attorney

Many people assume that POAs are only for the elderly, but anyone over 40 needs a Power of Attorney (honestly, anyone over the age of 18!) because life is unpredictable. Health problems, accidents, and even routine medical procedures can leave a person unable to make decisions for themselves, even if only temporarily. If something happens and there is no POA in place, family members may be forced to go through a long and expensive court process to access accounts or make healthcare decisions.

Having a POA also ensures that the person making decisions on your behalf is someone you trust. Without one, state laws determine who takes charge, and that may not be the person you would have chosen. A POA offers peace of mind that someone who understands your wishes will be in control if the need arises.

The Risks of Not Having a Power of Attorney

When there is no power of attorney in place, families often face legal and financial hurdles. If someone becomes incapacitated without a POA, a court-appointed guardian may be required to handle financial and medical matters. This process, known as guardianship or conservatorship, can take months and cost large legal fees. Worse, the court may appoint someone the individual would not have wanted in charge of their affairs.

Without a financial POA, bills may go unpaid, assets could be frozen, and loved ones may struggle to access necessary funds. Without a healthcare POA, doctors may not have clear instructions on medical treatment, and family members could disagree on what should be done. These complications create unnecessary stress during already difficult times.

How to Set Up a Power of Attorney

Creating a POA is straightforward, but it must be done correctly to be legally valid. Anyone over 40 needs a Power of Attorney tailored to their specific situation. A POA should be drafted with the help of an experienced estate planning attorney to ensure it complies with state laws and covers all necessary decisions. Choosing the right person to act as an agent is also important, as they will be responsible for making major financial and healthcare choices if needed.

Once a POA is in place, it should be reviewed periodically to ensure it still reflects current wishes and life circumstances. Relationships change, financial situations evolve, and state laws may be updated. Keeping documents current ensures that they remain effective when needed.

Planning for the Future Starts Now

No one expects to need a power of attorney, but having one in place is one of the most responsible steps an adult can take. Waiting until an emergency happens is not an option, as a POA must be signed while a person is still mentally competent. Johnson McGinnis Elder Care Law & Estate Planning helps individuals and families create legal documents that protect their interests and ensure their wishes are honored. Contact us to discuss how a power of attorney can provide peace of mind and security for the future.