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You’ve got a will. Maybe even a trust. You’ve had the hard conversations, dotted the I’s, and think your estate plan is solid. But if you haven’t included these two key documents—your financial power of attorney and your healthcare directive—your carefully prepared plan may collapse when it matters most.

Estate planning isn’t just about what happens after you die. It’s also about what happens if you can’t speak for yourself while you’re still alive. A stroke, accident, or sudden medical event can leave you incapacitated, and without the right documents in place, even your closest family members may be powerless to act on your behalf. Many families only discover what’s missing when they’re already in a crisis, and by then, it’s often too late.

Why Your Estate Plan Is Useless Without These Two Documents

1. Financial Power of Attorney: The Key to Keeping Your Finances Moving

Imagine being in a hospital and unable to access your bank accounts, manage bills, or handle tax documents. Now imagine your adult children trying to help, only to be turned away by your bank because they’re not authorized.

A financial power of attorney (POA) grants someone you trust the legal authority to act on your behalf in managing your money if you’re unable to. That could mean paying your bills, handling investments, or selling your home to cover long-term care expenses.

Without this document, your family could be forced to go through a lengthy and expensive court process to obtain guardianship. In the meantime, your mortgage could go unpaid, your credit could take a hit, or urgent financial needs could be left in limbo.

A POA should be created before you need it, while you’re still mentally capable. Waiting until you’re already impaired makes it much harder to establish. And if dementia or other cognitive decline is suspected, you may not be considered legally competent to sign one at all.

2. Healthcare Directive: Ensuring Your Medical Wishes Are Followed

Medical crises can unfold quickly, and without a healthcare directive, your treatment may not reflect your values, beliefs, or preferences.

Also known as an advance directive or medical power of attorney, this document names a trusted person to make healthcare decisions for you if you’re unconscious or otherwise unable to speak for yourself.

It can cover decisions like:

Whether you want to be resuscitated
If you wish to receive life-sustaining treatments
Who has authority to speak with doctors on your behalf
Your preferences for pain management or hospice care

Without a healthcare directive, doctors may default to aggressive, invasive treatments that go against your wishes. And family members may disagree about what you “would have wanted,” leading to heartbreaking disputes and even court battles.

A clear directive removes the guesswork and gives your loved ones peace of mind knowing they’re honoring your choices.

Why These Two Documents Matter More Than a Will

Wills and trusts only go into effect after you’ve passed away. But incapacity can happen long before that, especially in older adulthood. A car accident, fall, or medical emergency can happen at any age.

If you lose your ability to make decisions, your estate plan offers no help unless it includes both a financial power of attorney and a healthcare directive. These documents bridge the gap between life and death, ensuring your affairs are handled smoothly and your voice is still heard.

They also reduce the burden on loved ones, who may otherwise face difficult legal hurdles just to access your money or talk to your doctors.

Don’t Rely on State Defaults or “Next of Kin” Rules

Many people assume their spouse or adult children will automatically be able to step in if something happens. But that’s not always true. In the absence of legal documentation, hospitals and financial institutions are bound by strict privacy laws. Even your closest family members may be locked out. And if they do gain access, it might not be the person you would have chosen.

Courts may appoint a guardian or conservator—sometimes a stranger—to make decisions for you. That can be financially draining and emotionally devastating for everyone involved. Taking time to complete these documents now means your wishes will guide your care and finances, not a judge’s decision.

How to Create These Critical Estate Documents

Fortunately, creating a financial power of attorney and healthcare directive doesn’t have to be complicated. Many states offer free or low-cost templates online, and estate attorneys can walk you through the process to ensure it fits your specific needs.

You’ll need to:

Choose someone you trust completely
Clearly outline their authority and any limitations
Sign and notarize the documents according to your state laws
Share copies with your healthcare providers, financial institutions, and loved ones

Don’t forget to review and update these documents every few years or whenever your life circumstances change. If the person you named is no longer available or your preferences have shifted, you’ll want your documents to reflect that.

Strengthening Your Estate Plan from the Inside Out

An estate plan without a financial power of attorney and a healthcare directive is like a house without doors—impressive from the outside, but useless in a crisis. These two documents ensure that someone you trust can step in and take care of what matters when you can no longer do so.

They’re not just legal forms. They’re acts of protection—for yourself, and for the people who care about you most.

Have you reviewed your estate documents recently? What questions or hesitations do you still have about putting these two pieces in place?

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Riley Jones

Riley Jones is an Arizona native with over nine years of writing experience. From personal finance to travel to digital marketing to pop culture. When she’s not writing, she’s spending her time outside, reading, or cuddling with her two corgis.