The durable financial power of attorney is a very simple and cheap way that one can arrange for someone else to be handling their finances. This happens whenever you become incapacitated to do so which includes not being able to make decisions for yourself. A financial power of attorney is a very important document that a person should consider acquiring for their own benefit. It is a document which can be a great blessing for your family as well. In the event that one becomes incapacitated before they have prepared this document, then a court proceeding becomes an inescapable route. This is because your closest relatives, companion or spouse will have to convince the court to be issued with authority over at least some of your affairs involving your finances.
When financial power of attorney do take effect?
This document can be drafted and becomes effective immediately you put your signature on it. It is common to find many spouses having these documents which are active should anything happen to them. When preparing it, you should specify that you want your power of attorney to be ‘durable’. This is because if you don’t specify that, then once you become incapacitated, the document will end. You also have the option of allowing the document to take effect once the doctor has ruled that you have become incapacitated.
Your agent’s importance
Whenever you prepare and sign the financial power of attorney with the option of durable, then you immediately give another person the legal authority to act on your behalf should need arise. This person is the one called your attorney-in-fact and in some cases, your agent. Normally, you will find giving their attorneys the broader powers to handle all matters that concern their finances. Some of the authority that they are given includes: being able to use your assets to pay for all daily expenses as well as those of your family. To be able to purchase, sell, maintain as well as paying taxes on mortgage real estate. You can also give them authority over your small business among many other things.
How to make a financial power of attorney
In order to create a power of attorney which is durable and legal, you will need to carefully complete and sign a form that is just a few pages. There are those states which have created their own forms but it is not mandatory that you use them. There are also banks and brokerage firms which also have their own forms.
This form usually ends when one has died. This means that your agent will no longer have the authority over your finances once you have died. In case you want that agent to wind up all of your affairs after your death, then you have to use a will and then the person as your executor.
More here about finanial power of attorney:
- Gehres Law Group
4275 Executive Square #200, La Jolla, CA 92037, USA
- Panakos Law
555 W Beech St, San Diego, CA 92101, USA
- Ortega Business Law Firm
12636 High Bluff Drive, Suite 400
San Diego, CA 92130