A comprehensive estate plan should involve both a trust and powers of attorney. Powers of attorney and trusts both have a legal impact during your lifetime. When you create a trust and transfer property into the trust, the trust as an entity becomes the owner of all property placed in it. Unless you use an irrevocable trust for asset protection, you can still retain complete control over the property you place in your trust during your lifetime. Your powers of attorney most likely have an effect only if you become incapacitated during your lifetime. Should this occur, your agent can take control of things like your financial affairs and medical decisions.
One way to minimize the risks associated with powers of attorney is to add your adult children as trustees during your lifetime. A Kendall County, IL estate planning lawyer can help you devise an estate plan that protects you and your beneficiaries.