Contemplating a debilitating illness or injury is unpleasant, but by planning ahead, you can take some of the burden off your loved ones should tragedy strike. By creating a power of attorney before you need it, you make sure your wishes are known should you become disabled.
A power of attorney is a legal authorization that allows someone else to act in your place in matters related to finances, personal affairs and health care. If you ever become mentally unsound and unable to handle your own affairs, a durable power of attorney can stay in effect indefinitely.
A living trust is a legal document that allows you to explain exactly how you want your assets handled, appoint heirs and to name a trustee, who will fulfill the role of an executor upon your death. The living element of a living trust allows you to do all this while you are still living.