Importance of Power of Attorney In Wills and Trusts

When most people sit down to “finally get their affairs in order,” they focus on wills and trusts—who gets what, who takes care of the kids, how to avoid probate, and how to keep things simple for their family.

Those documents are essential. But there’s a major gap many families don’t see until it’s too late:

What happens if you’re still living, but you can’t make decisions for yourself?

In that situation, your will and trust are mostly silent. The people who love you still need legal authority to:

Talk with your doctors
Pay your mortgage and other bills
Access your accounts and retirement plans
Carry out the financial and legal steps your will or trust will eventually require

That authority is conveyed effectively through well-drafted, thoughtfully coordinated powers of attorney.

This blog focuses on why your powers of attorney need to be figured out at the same time as your will and trust—and why coordination matters for families in Idaho and Washington.

How Wills, Trusts, and Powers of Attorney Work Together

A comprehensive estate plan often includes:

Last Will and Testament – Says who will receive your assets after you pass away and who will handle your estate (your personal representative/executor).
Revocable Living Trust – Holds and manages assets during your life and after your death, often helping avoid probate and adding flexibility and protection.
Financial Durable Power of Attorney – Appoints someone to manage your finances and legal matters if you become unable to do so.
Healthcare Power of Attorney – Names the person who will make medical decisions if you cannot speak for yourself.

A simple way to think about it:

Your will and trust answer: “What happens to everything after I’m gone?”
Your powers of attorney answer: “Who steps in to help while I’m still here but can’t act on my own?”

If those documents don’t match—or if powers of attorney are missing—the people you trust may not have the authority they need to follow the plan you created.

What Is a Power of Attorney—and Why “Durable” Matters

A power of attorney (POA) is a legal document where you (the “principal”) give another person (your “agent” or “attorney-in-fact”) authority to act on your behalf.

In the estate planning context, two types are especially important:

Financial Durable Power of Attorney – Authorizes your agent to handle financial and legal matters such as banking, paying bills, working with insurance, dealing with the IRS, or managing real estate.
Healthcare Power of Attorney – Authorizes your chosen person to speak with your doctors, review records, and make treatment decisions if you’re unable to.

The word “durable” means that the power of attorney continues to be effective even if you become incapacitated. Without that durability language, the document could stop working at exactly the moment you need it.

In short: A durable power of attorney is what keeps your chosen decision-makers in charge, instead of leaving your family to rely on a court process.

Why Powers of Attorney Are Essential to Your Will and Trust

Your will and trust are like a blueprint. Your agents under your powers of attorney are the people holding the tools while you’re unable to.

Here’s how they work together in real life:

1. Keeping Your Bills Paid and Assets Protected

If you’re in the hospital, recovering from surgery, or facing a condition that affects memory or cognition, someone still has to:

Pay the mortgage or rent
Manage utilities and property taxes
Respond to time-sensitive mail
Deal with insurance claims
Protect and manage investment accounts

A financial agent with proper authority can do these things without having to ask a court for permission. That stability makes it much easier for your personal representative and/or trustee to later follow the instructions in your will or trust.

2. Avoiding Guardianship or Conservatorship

Without a valid power of attorney, your family may have no choice but to petition the court to be appointed as a guardian or conservator if you become incapacitated. That process can be:

Time-consuming
Public
Emotionally draining
More expensive than properly planning ahead

A well-drafted set of powers of attorney often prevents the need for those court appointments, or at least narrows what’s needed.

3. Making Sure Your Trust Can Actually Be Used

Many Idaho and Washington residents use revocable living trusts as part of their plan. For the trust to work smoothly:

Trustee changes may need to be implemented
Assets may need to be transferred in or out
Property may need to be sold, refinanced, or re-titled

Your financial agent may need authority to work with your trustee and financial institutions to make those moves. If your power of attorney and trust don’t align, the trustee’s hands can be tied at a crucial time.

The Two Core Powers of Attorney in an Estate Plan

While there are many variations, most coordinated estate plans center on two key documents.

Financial Durable Power of Attorney

This document typically authorizes your agent to:

Access and manage bank accounts and investment accounts
Sign checks and pay bills
Deal with the IRS (tax returns, payments, audits)
Handle retirement accounts within the limits of the law
Manage, sell, or refinance real estate
Work with your financial planner and attorney

You can customize how broad or limited this authority is, and whether it starts immediately or only upon a specific trigger (such as a doctor’s certification of incapacity).

Healthcare Power of Attorney

Healthcare decisions often need to be made quickly and under stress. Your healthcare agent may:

Talk with doctors and specialists
Review medical records
Decide on treatment plans if you can’t express your wishes
Weigh in on surgeries, procedures, medications, and care settings
Work with your providers to follow your values and preferences

Many people also pair this document with advance directives or living wills, which outline your preferences regarding life support, end-of-life care, and other critical decisions.

When Powers of Attorney Don’t Match Your Will or Trust

Problems typically arise when different documents are created at different times—or by different people—without a unified strategy. Common issues include:

Different people are named in different roles without a reason
- Your will names one child as personal representative, your trust names another as trustee, and your power of attorney names a third as financial agent. That may be fine—but if there’s no plan behind it, it can create tension.
Outdated agents
- An ex-spouse, former friend, or relative who has moved away is still listed as your agent because documents were never updated.
Conflicting instructions
- Your healthcare power of attorney and your advance directive send mixed messages, making it hard for doctors and family members to know what you truly wanted.
No alternates
- If your first choice can’t act when needed, there’s no one clearly named next.
Out-of-state documents that haven’t been reviewed
- If you have moved to Idaho or Washington from another state, your existing powers of attorney may not work as intended due to differences in local laws or institutions.

Any of these issues can slow down or complicate the very situations your estate plan is meant to simplify.

Building the Right “Decision-Making Team”

Estate planning isn’t just about documents; it’s about the people you trust to stand in for you. Ideally, your will, trust, and powers of attorney should work together like a well-coordinated team.

Key roles often include:

Personal Representative (Executor) – Administers your estate after your death under your will.
Trustee (and Successor Trustee) – Manages assets in your trust for you and your beneficiaries.
Financial Agent (under your Financial Durable Power of Attorney) – Handles finances and legal matters during your lifetime if you can’t.
Healthcare Agent (under your Healthcare Power of Attorney) – Makes medical decisions if you can’t communicate.

These can be the same person, or different people, depending on your family dynamics and the skills of each person.

Qualities to Look For

When choosing agents and decision-makers, consider whether they are:

Trustworthy and reliable
Able to stay calm under pressure
Organized and comfortable with paperwork
Good communicators with siblings and other family members
Willing to follow your wishes, even when it’s hard

Sometimes your “most responsible” child is already overwhelmed with their own obligations. Sometimes a sibling is great with finances but doesn’t handle medical decisions well. A good attorney can help you think through what makes the most sense in your situation.

Life Stages When Coordinated Powers of Attorney Really Matter

You don’t have to be retired—or wealthy—for powers of attorney to be important. They matter at almost every stage of adulthood:

Young Adults (18+)
- Once a child turns 18, parents can’t automatically access medical information or help with financial decisions. Simple powers of attorney can make a big difference for college students and young adults.
Parents with Young Children
- If something happens to you, having the right people in place to make medical and financial decisions can protect your household while your longer-term will and trust provisions are carried out.
Blended Families
- When there are children from prior relationships, new spouses, or complex family dynamics, uncertain decision-making can quickly lead to conflict. Clear, coordinated powers of attorney can help avoid misunderstandings.
Business Owners
- If you own a business, your financial power of attorney may need specific authority to handle business banking, contracts, payroll, or dealings with partners.
Aging or Health Changes
- As health concerns increase, it’s even more critical to make sure your decision-makers are up to date, understand your wishes, and are empowered to act.

How Often Should You Review Your Powers of Attorney?

As a general rule, it’s wise to review your will, trust, and powers of attorney:

Every 3–5 years, and
Any time you experience a major life event, such as:
- Marriage or divorce
- Birth or adoption of a child
- Death or disability of someone you’ve named in your documents
- Significant change in health
- Moving between Idaho and Washington or from another state

Even if nothing big has changed, a simple review can confirm that:

Your agents are still the people you’d choose today
Your documents still reflect your values and goals
Your will, trust, and powers of attorney are all working together as one unified plan

How an Attorney Helps Coordinate Wills, Trusts, and Powers of Attorney

Working with an estate planning attorney is about more than filling in blanks on a form. A thoughtful attorney will:

Ask detailed questions about your family, assets, and goals
Help you understand who should serve in each role and why
Draft powers of attorney that integrate with your will and any trusts
Address issues that are easy to overlook, such as:
- Digital assets and online accounts
- Business interests
- Real estate in different states
- Tax considerations
Encourage you to communicate your wishes to the people you’ve chosen, so they aren’t surprised later

Instead of separate documents created at different times, you walk away with one coordinated plan: will, trust, and powers of attorney all working together for your family’s benefit.

Questions to Ask Yourself Before Your Appointment

If you’re getting ready to meet with an estate planning attorney, it can help to reflect on questions like:

Who do I trust with access to my finances if I can’t act for myself?
Who would I want making medical decisions on my behalf?
Should those roles be the same person, or different people?
Who should step in if my first choice can’t serve?
How do I want my decision-makers to communicate with each other and with my family?

You don’t have to have perfect answers to schedule a meeting—but thinking about these questions ahead of time can make the conversation smoother and more productive.

Ready to Make Sure Your Powers of Attorney Match Your Will and Trust?

Putting a will or trust in place is a powerful step for your family. Making sure your powers of attorney are thoughtfully chosen and coordinated is what makes that plan truly work in real life—during illness, injury, or other difficult seasons.

If you’ve never created powers of attorney, or if your documents were prepared years ago in another state, this is a good time to review them alongside your will and any trusts.

A short conversation today can spare your loved ones from uncertainty and court involvement later—and give you confidence that you’ve chosen the right people to stand in for you when it matters most.

If you’d like, I can also help you turn this blog into a version with specific internal links (to the financial POA, healthcare POA, will, and trust service pages) tailored to Hayden Lake Law’s site structure.

Yes. Your will and trust only take effect after you pass away. Powers of attorney apply while you’re still living but unable to make decisions. Without them, your loved ones may need to go through a court process to obtain authority—something that a properly drafted power of attorney can prevent.
Choose someone who is trustworthy, organized, calm under pressure, and comfortable making decisions on your behalf. For many families, this might be a spouse, adult child, or close friend. You can choose the same person for both roles or split responsibilities depending on strengths.
If your agent is no longer available or appropriate—due to death, distance, conflict, divorce, or health changes—the document may fail when you need it most. That’s why attorneys recommend reviewing your powers of attorney every 3–5 years or after any major life event.
Sometimes. Each state has its own requirements, and financial institutions may reject old or out-of-state documents. If you’ve moved or split time between Idaho and Washington, it’s wise to have your powers of attorney reviewed and updated to ensure they meet the legal and practical standards of your primary state of residence.

By carefully considering the need for a trust and the benefits it can provide, you can make informed decisions about your estate planning. Hayden Lake Law is committed to helping you navigate this complex process, providing personalized and professional services to protect your legacy and support your loved ones. This article is meant to be informational and should not be considered legal advice.

Why Your Powers of Attorney Matter Just as Much as Your Will and Trust