Navigating the intricacies of your financial legacy can be a daunting task. Understanding the nuances…
When Do I Need a Power of Attorney? Estate planning is important. Signing a POA can be essential for those seeking to safeguard their financial resources and other assets.
The Tri-County Times explains in its article, “Power of attorney protects loved ones,” that a POA is granted to an “attorney-in-fact” or “agent.” It gives that individual the legal authority to make decisions for an incapacitated “principal.” The laws for creating a power of attorney vary based on the state. However, there are some general similarities.
Many people think their families will be able to intercede, if an event occurs that leaves them incapacitated and unable to make decisions for themselves. That’s not always true. If a person isn’t named as an agent or granted legal access to financial, medical, and other information, family members may be left out. Further, the government may appoint someone to make certain decisions for an individual, if none is named.
Almost everyone can benefit from establishing a POA.
A signed one will remove the legal obstacles that may arise in the event that a person is no longer physically or mentally capable of managing certain tasks.
A POA is a broad term that covers a wide range of decision-making. The main types of POA’s are a general POA, health care POA, durable POA and special POA.
The responsibilities of some of these overlap, but there are some legal differences. For instance, a durable power of attorney relates to all the appointments involved in general, special and health care powers of attorney being made “durable”—meaning that the document will remain in effect or take effect if a person becomes mentally incompetent.
Certain powers of attorney may expire within a certain time period.
An agent appointed through POA may be able to handle many tasks, depending on what powers are granted in the document. They include banking transactions, filing tax returns, managing government-supplied benefits, deciding on medical treatments and executing advanced health care directives.
Although a power of attorney document can be completed on your own, sitting down with an experienced estate planning attorney is preferred to better understand the intricacies of this vital document and ensuring that it will be legally binding and properly prepared.
Reference: Tri-County (MI) Times (January 24, 2019) “Power of attorney protects loved ones”