Power of Attorney
What is a durable power of attorney?A durable power of attorney is an important estate planning document that
authorizes another person -- usually a family member or trusted friend -- to make
decisions and act on your behalf in various financial matters if you are no longer able to
do so. There may come a time when you are disabled or incapacitated and unable to
make decisions regarding your personal finances or business matters. It is important
that contingencies like this are planned for in advance to make any necessary
transactions and decisions as easy as possible.
Why do I need a durable power of attorney?
If you become disabled or incapacitated you may no longer be deemed to have
the legal capacity to make your own decisions. This incapacity could result from medical
diagnoses such as Alzheimer's, or something much more sudden such as a stroke or
accident resulting in a coma. Regardless of the cause of your incapacitation, it is
important to plan for the possibility it may happen. If you do not have a durable power of
attorney document in place, and a court finds that you are no longer capable of making
important decisions regarding your business or finances, it will appoint a guardian /
conservator to make decisions for you. You should not leave that kind of control in the
hands of a judge you have never met.
What should I include in my durable power of attorney?
This is not a simple answer. It all depends on the decisions that may need to be
made. Most durable powers of attorney will contain provisions that grant your agent, or
attorney-in-fact the right to collect and pay debts, buy and sell property, manage
investments, conduct banking transactions, place property into trusts that already exist,
file tax returns, exercise rights with respect to life insurance policies and annuities, to
deal with the Social Security Administration and other agencies, and transact other
business. Other provisions may include a right to vote in corporate board or stockholder
meetings, instructions on how to compensate your agent / attorney-in-fact for his or her
efforts, and who they may consult with before making decisions on your behalf. Call us
today so that we may prepare this important document for you.