Power of Attorney
Protect Your Future with a Durable Power of Attorney
One of the most important estate planning documents to have in place is a durable financial power of attorney. A durable power of attorney is a legal document giving a trusted person (the agent) the right to make decisions for another person (the principal) who is incapacitated or otherwise unable to make such decisions on their own.
A power of attorney is signed by the principal, and accepted by the agent, while both individuals are competent and able to understand the purpose of the document.
The Importance of a POA
A financial power of attorney gives the agent control over the principal’s financial affairs. It permits them to make financial decisions on behalf of the principal, including withdrawing money from bank accounts, paying bills, and buying or selling property.
A well-drafted power of attorney would allow the agent to manage the principal’s finances in the same manner as the principal.
It is important to understand that having a power of attorney does not mean the principal loses agency over their own finances; it simply means that someone other than the principal is also capable of making such decisions. A power of attorney is “durable” because it remains in effect during any periods of subsequent incapacity or lapse of time.
Key Benefits of a Financial Power of Attorney
The power of attorney document is an integral part of any estate plan. Once an individual becomes a legal adult, it is wise to start thinking about having a power of attorney in place. As long as the principal names a trusted individual to serve as an agent, the advantages of a power of attorney greatly outweigh any disadvantages.
In the event of incapacitation, without a power of attorney, the only way a loved one could manage the principal’s financial affairs is by going to court and obtaining conservatorship. It can be a very costly, lengthy, and stressful process. Therefore, help your loved ones help you by having a well-drafted power of attorney in place so, in the event it is needed, the transition is seamless for the agent.
Take Control of Your Estate Planning Today
State laws vary as to the specific rules and requirements for having an effective power of attorney. An experienced estate planning attorney will draft your power of attorney to ensure it is a legally valid document.
J.L. Williamson Law Group has extensive experience with asset protection, estate planning, and elder law. We have the expertise to ensure you and your loved ones are protected and secure moving forward. For years, our law firm has continued to help clients establish well-organized, highly beneficial plans for their future. Do not wait until a crisis occurs to make a plan. Call us today or schedule your consultation online.