Powers of attorney and healthcare directives are essential components of estate planning that address decision-making authority in the event of incapacity. A power of attorney allows individuals to designate someone to manage their financial affairs if they become unable to do so themselves, ensuring that bills are paid, investments are managed, and other financial matters are addressed. Healthcare directives, on the other hand, specify medical preferences and appoint a healthcare proxy to make medical decisions on behalf of the individual if they are unable to communicate their wishes. These documents provide clarity and guidance during challenging times, ensuring that one's affairs are managed according to their intentions.