The main advantage of a power of attorney: it will provide you with an organized plan to manage your affairs if you’re ever unable to make your own decisions. This is an important part of estate planning because you want to trust that your health care and financial decisions are managed in accordance with your preferences.
The disadvantage of a POA: you’re entrusting a lot of power over your affairs to someone else. This can lead to them taking advantage of this authority if you don’t choose the right person.5 Thankfully, there are safeguards you can include in your estate plan to limit any exploitation. You can also create a springing POA, so it doesn’t become effective until after you’ve been declared incompetent. This way you can continue managing your own affairs until you’re physically or mentally unable to do so.