![]() To create a legally valid durable power of attorney, all you need to do is properly complete and sign a fill-in-the-blanks form that's a few pages long. ![]() The agent is required to act in your best interests, maintain accurate records, keep your property separate from the agent's own property, and avoid conflicts of interest. ![]() hire someone to represent you in court, and.transfer property to a trust you've already created.claim property you inherit or are otherwise entitled to.buy and sell insurance policies and annuities for you.handle transactions with banks and other financial institutions.invest your money in stocks, bonds, and mutual funds.collect Social Security, Medicare, or other government benefits.buy, sell, maintain, pay taxes on, and mortgage real estate and other property.use your assets to pay your everyday expenses and those of your family.You may want to give your agent authority to do some or all of the following: But you can give your agent as much or as little power as you wish. This person is called your agent or, in some states, your attorney-in-fact.Ĭommonly, people give their agent broad power to handle all of their finances. When you create and sign a durable power of attorney, you give another person legal authority to act on your behalf. However, springing powers of attorney can cause serious delays and problems for your agent. It allows you to keep control over your affairs unless and until you become incapacitated, when it springs into effect. This is called a "springing" durable power of attorney. (Many spouses have active financial powers of attorney for each other in case something happens to one of them-or for when one spouse is out of town.) You should specify that you want your power of attorney to be "durable." If you don't, in most states, it will automatically end if you later become incapacitated.Īlternatively, you can specify that the power of attorney does not go into effect unless a doctor certifies that you have become incapacitated. When a Financial Power of Attorney Takes EffectĪ financial power of attorney can be drafted so that it goes into effect as soon as you sign it. Planning Ahead With Banks to Avoid Problems With Your POA.When a Financial Power of Attorney Ends.When a Financial Power of Attorney Takes Effect.You can also learn about other types of powers of attorney you might need. Your spouse, closest relatives, or companion will have to ask a court for authority over at least some of your financial affairs. If you become unable to decide for yourself and you haven't prepared a durable power of attorney, a court proceeding is probably inescapable. A durable power of attorney for finances-or financial power of attorney-is a simple, inexpensive, and reliable way to arrange for someone to manage your finances if you become incapacitated and unable to make decisions for yourself.Ī financial power of attorney is a good document to make for yourself, but it can also be a great blessing for your family.
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