Creating Your Powers of Attorney
This month’s Legal Brief will cover several important things to keep in mind when creating Powers of Attorney. We also help you know why you need powers of attorney and how to make sure yours will actually do what you want For more detail about what Powers of Attorney are see last month’s Legal Brief, Legalese Explained: Power of Attorney.
A Power of Attorney gives a lot of power in decision making to your agent(s). As a result, it is important to thoroughly consider who will be best suited to take on this role and any responsibilities. Listed below are several things to think about when creating a Power of Attorney to ensure that the Power of Attorney document(s) that you create do exactly what you want them to.
Key Considerations:
Who you name as your agent.
Other that needing to be at least 18 years old, there are no restrictions on who the agent can be. Choose someone who will make wise decisions in your best interest and follow guidelines set in place. There are protections against abuse, but the best protection is someone who takes their fiduciary responsibility seriously.
What you want the Power of Attorney to accomplish.
Is there a specific purpose you have? For example: real estate transactions, banking, medical decision making, generally financial support, concerns that come with aging, etc. Ensure your powers of attorney specify exactly what you want them to. Often, improper behavior can be prevented by making sure the document states exactly what you will allow your agent to do.
When you want the Power of Attorney to go into effect.
Now? Only when you are unable to make your own decisions? For a certain time frame while you have a surgery?
How many agents best suit your situation?
Maybe one person, such as a spouse, can handle every aspect. Or maybe you want one person to make financial decisions and another to make medical decisions. Perhaps you would prefer an impartial third party like a bank in the role. Every situation is different, when creating powers of attorney you choose what works best for your circumstances.
What will happen with your assets such as financial accounts, stocks, properties, or savings?
Some of these can be dealt with by properly naming beneficiaries. Some are best dealt with when creating your Will or Trust. Letting your agent know what the plan is will help them be set up to successfully manage things when the time comes.
Why creating Powers of Attorney is necessary…
Power of Attorney Documents can:
In creating Powers of Attorney now, you remain empowered as you create and set the guidelines and name who will act as your agent. In some cases, individuals without Powers of Attorney in place could have a court appointed guardian or conservator. By the time this becomes necessary you will likely not be able to choose who you want in either role. Additionally, there is more involvement with the courts and required documentation for those in court appointed roles of guardian (medical decision making) and conservator (financial decision making).
Ensure Your Power of Attorney Works for You
The best way to get a Power of Attorney that represents your unique needs is working with a knowledgeable attorney. Creating powers of attorney with a comprehensive estate plan that puts together all of your wishes helps those you name to act as agent(s) know what you want. At Stone Law we walk you through the whole process and help explain everything to you and your agents in easy to understand language. Give us a call today at 877-897-6591 and let us help you find peace of mind.
