When would power of attorney be needed?

Power of attorney is a legal document that grants someone the authority to act on behalf of another individual in legal or financial matters. The primary context in which a power of attorney is needed is when a person is unable to manage their affairs, which may occur due to reasons like illness, injury, or incapacity. This arrangement ensures that decisions regarding financial transactions, medical care, or legal matters can be managed by a trusted individual, allowing for continuity and proper management of the person's interests during times when they cannot do so themselves.

The other scenarios presented do not typically require the establishment of a power of attorney. For instance, when someone dies unexpectedly, the power of attorney becomes null and void, and estate matters would be handled differently, usually through probate processes. Similarly, if an individual passes away without a will, their estate is managed according to state laws of intestacy rather than through power of attorney. Lastly, while a living will deals with medical decisions and preferences regarding care when a person is unable to communicate, it does not create a power of attorney, which serves a different function relating to legal and financial authority.