Planning for the uncertainties of the future from a legal and financial perspective can be difficult if you don’t have a clarity of the laws of your jurisdiction. There are many requirements as per the laws to be put into place to safeguard yourself and your loved ones legally and financially. A Will and a Power of Attorney (“POA”) are the primary legal forms used to protect and transfer your belongings to your beneficiaries in a certain way.

What Is a Last Will?

A Will is a document that allows you to decide who will receive your assets after you die. As the testator, you select who your heirs will be and what they each will receive. You also appoint an executor, who will be responsible for distributing your assets as per your wishes. A Will can also be used to name a guardian for your minor children.

What is a Power of Attorney?

A power of attorney (POA) is a legal form that authorizes someone else (called the attorney in fact or agent) to make business, legal, and financial activities and decisions on your behalf. For instance, if you become unable to manage your own affairs, your agent will be able to do it for you. Your agent will be able to pay your bills, make repairs to your home, sell your car, run your business, and more. If you do not have a power of attorney, a court proceeding is necessary to prove you are mentally incompetent and have a guardian appointed. If you execute a power of attorney, you can choose the person you prefer and there is no delay between the time you need someone to handle your affairs and the time they can do so. Laws in relation to power of attorneys may vary in each country . The document must be signed and notarized in most of the countries to be valid.

The role of both the documents aims to achieve smooth transmit of your powers and property in general but let’s see a one on one comparison of both the forms of succession planning.

Comparison between a POA and a Will:

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