Power of Attorney and estate planning is an important part of an individual’s life. These documents give the appointed person(s) the power to act on your behalf. The Power of Attorney can be limited such as the sale of your home, or general for a variety of circumstances. Estate planning consists of involving an advisor that you trust and knows your concerns, goals, assets and your family. It can include different professionals, such as an accountant, banker, broker, financial planner, life insurance advisor and a lawyer. With estate planning, property and personal possessions cover the transfer at the time of death.
Having a power of attorney and estate planning in place, ensures that your family and loved ones are financially looked after. If you were in a car accident or became ill, and were mentally incompetent to make decisions, a power of attorney authorizes someone to take care and make decisions on property, including assets and finances. This person will act on your best interests, when you cannot make decisions yourself.
One of the questions that is frequently asked is who should be your agent or Power of Attorney? In many cases spouses and children are chosen to act on your behalf. You can choose to have more then one power of attorney that will act at the same time. Having a successor attorney should also be named in case that the person that has been chosen may not be able to act when the time happens.
Power of Attorney and estate planning should always take considerate thought to making the process a positive one. Many times people will want to know if the power of attorney expires? In most states, a “durable” power of attorney will remain valid after it has been signed until death or if the document is revoked. It is always best to go over the power of attorney periodically with your lawyer if you have considered changing your attorney and if everything still meets your needs.
A good place to start when you are contemplating power of attorney and estate planning is to take inventory of your assets. Assets can include insurance policies, retirement plans, investments, and business or real estate interests. You will need to ask yourself who you want to inherit your assets, who you want to handle your affairs, and who you will want to make medical decisions on your behalf, if you are incapacitated.
Discussing to your family the power of attorney and estate planning is a good decision to do before hand. In some cases inheritance can become a messy issue and being clear on what your wishes are, will help to solve any conflict that could arise in the future.
Having a power of attorney and estate planning documents, will safe guard your assets from government taxation and relatives that are irresponsible. It gives you a piece of mind knowing that your wishes will be followed, if you become incapacitated. It will legally allow your wishes to be followed out and distributed how you intended.
29 Oct
