Page 30 - Tree Line - North Carolina Forestry Association - Third Quarter 2023

ADVISOR’S CORNER
The Importance of Executing
Financial and Health Care Power of Attorney Documents
By Iona L. Chapman, attorney at law and associate, Shumaker, Loop & Kendrick, LLP
Have you considered what happens if you become unable to make financial and medical decisions for yourself?
To ensure someone can make these decisions for you, it is recommended that you execute Financial Power of Attorney and Health Care Power of Attorney documents. In addition to appointing a substitute decision maker for medical decisions, your Health Care Power
of Attorney may also incorporate an Advance Directive, which will allow you to express your preference for life-prolonging measures.
Although loss of decision-making capacity is commonly associated with conditions
such as advanced dementia, loss of capacity can also be temporary — for example, if
you are unconscious. In both scenarios, it is important that you have appointed someone who can make decisions for you.
What Happens If I Choose Not to Execute Power of Attorney Documents?
If you are unable to make decisions and have not designated agents in Power of Attorney documents, someone must petition the court to request the appointment of a guardian. At the guardianship hearing, the court
will first determine if you are able to make decisions for yourself. If not, the court will decide whom to appoint to make decisions for you. By failing to execute Power of Attorney documents, you delegate the choice of your decision maker to the court. In doing so, you have lost the opportunity to select the person
you would like to make these decisions. Guardianship proceedings are not only
time-consuming, costly, and emotionally upsetting for your loved ones, but while you wait for the court to appoint a guardian, no one has authority to make financial or medical decisions on your behalf.
In some North Carolina counties, the court will not appoint a layperson to act as guardian of the estate. A guardian of the estate is responsible for financial decision- making. If this situation arises, typically, a court-appointed attorney will be appointed as your guardian of the estate and that individual will be paid a fee from your assets for his or her services.
Next Steps
If you have executed Financial and Health Care Power of Attorney documents, take time to review these documents to ensure that your decision-makers reflect your current wishes. If they do not, seek the guidance of an attorney and update these documents.
If you do not have Financial and Health Care Power of Attorney documents, consult with an attorney and put these documents
in place. Before meeting with your attorney, consider whom you trust to make financial and medical decisions on your behalf. You may appoint one individual to make financial decisions and a different individual to make medical decisions.
Think of Power of Attorney documents as an insurance policy. You hope that you never have to use them, but you have peace of mind that they are there if needed.
ABOUT THE AUTHOR
A client-centered attorney, Iona L. Chapman is a member of the Wealth Strategies Service Line, where she focuses on estate planning, tax planning, and estate and trust administration. Clients benefit from
her conscientious and dedicated work ethic.
Her motivation to become a lawyer spawned from her desire to help people and she experiences a great deal of satisfaction from being able to provide clients with the legal knowledge and tools
they need to accomplish their goals.
28 ncforestry.org / THIRD QUARTER 2023