While it is much easier to put off getting a power of attorney than to create one, you should not take any chances. Before it is too late, you have to designate a trusted person to act and make decisions on your behalf. Should you wait until you become mentally or physically disabled and regret later for not doing it earlier? If you want to protect your assets and secure your financial future, then preparing a POA is one of the best decisions that you will ever make in your life.
A lot of people have wrong notions about powers of attorney. They think that only the elderly as well as those with massive assets are only the ones who must draft power-of-attorney forms. However, the need for POA is not limited only to these groups. Even younger people and those who have only a few assets may create powers of attorney. A POA suits people who want to have the peace of mind knowing that someone they trust will act on their behalf regarding financial or health care matters when they are no longer able to do so.
It is impossible to underestimate the importance of POA. This legal document comes in handy when you incur an injury or develop a life-threatening disease, both of which render you incapable of making decisions on your own. In case you become physically or mentally incapacitated, how could you possibly pay your bills and mortgages or conduct transactions at the bank? Imagine your home getting foreclosed because you are physically unable to pay off your home loan while you were undergoing medical treatment in a hospital. If you do not have an attorney-in-fact, you might get into trouble with the law.
You don’t want that to happen, right? So it is a wise move to have someone take care of your properties while you are away.
What will happen if you don’t have an attorney-in-fact and you are incapable of acting or deciding for your affairs? The court will then use its discretion in deciding who will be in charge of making decisions regarding your finances, properties, or health care. A judge will choose a person who will serve as your legal representative, and this agent may be someone who you do not fully trust. If you want to have a say on who will take care of your affairs when you become incapable of doing so, then it makes perfect sense to create a power-of-attorney document.
When is the best time to get a power of attorney? The answer is simple: now. It is because a POA is designed to protect yourself and your assets when the unexpected happens such as a debilitating illness or a serious injury. Thus, you will never know when a POA becomes necessary. Having said that, it pays to create it as soon as you can so that you avoid the conflicts or hassles that might arise should crucial decision-making has to be made and you are unable to do it.
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Ever wondered how your modest properties or finances would be managed, in case something happens to you or you would have to go somewhere? Then think about the power of attorney. The power of attorney is a legal document that would enable you to grant a person or organization control over your financial and business matters.
The person who is signing or creating the power of attorney is called the principal, while the person who would be awarded with authority is called the attorney-in-fact or the agent. Since the power of attorney would provide the agent the control over banking, credit and other financial issues, it is important to be made carefully which is why legal assistance is importance.
There are two kinds of power of attorney, the specific and the general. The specific power of attorney identifies particular transaction when the document would take effect. While, the general power of attorney could cover different personal and business transactions.
When choosing the person who would best represent the interest of the principal, it is important to consider several factors.
• Age. If you are considering your child to be the attorney-in-fact, then you would have to take note of the age. Laws on creating the power of attorney are different on each state. But almost all of the laws agree that no agent should be below 18 or 21 years old.
• Time. When choosing the best agent to represent you, then it may be important to consider the amount of time they can spend on managing financial and legal matters.
• Location. Choosing an agent who does not have to be far from the principal and the property is a better choice.
• Capability. It is important to consider an agent that has the ability to manage the principal’s property and legal matters. The agent is showing problems with managing their own finances, then it may not be a good idea to trust your own finances to them.
• Work experience. It may be important to choose an agent or an attorney-in-fact that has experience or level of expertise in finances or in legal matters.
• Organization and documentation skills. The principal may need the attorney-in-fact to track and properly document the different transactions made whether it is for personal, business or government purposes.
Another thing to consider is determining the spouse as the attorney-in-fact. Most military personnel would provide the power of attorney to their spouses especially if they are away in combat. A close relative could be work as an alternate.
It does not always have to be relative or a family member, some would get a non-relative attorney-in-fact. If the principal is also a bit uncomfortable on assigning a lot of responsibilities on one agent, then h/she could get other co-agents. It could be done as long as the information or the limitation of the capabilities is specified in the power of attorney. Before specifying the name of the agent in the power of attorney, the principal should talk to the agents first and ask them if they are willing to be agents.
There are no organizations, departments or governing agency that would monitor the agent, it would rely on the principal and the principal’s relatives to monitor if the agent is carrying what is stipulated in the power of attorney.
Power of Attorney Related Articles
- An Insight On The Different Types Of Power Of Attorney
- Choosing an Agent for your Power of Attorney
- Choosing The Best Agent For Your Power Of Attorney
- Essential Information about Durable Power of Attorney
- Frequently Asked Questions about Power of Attorney
- How an Agent in Your Power of Attorney should Manage Your Money
- How Much Power of Attorney Should You Give to Your Attorney-in-Fact?
- Important Considerations When Creating a Financial Power of Attorney
- Medical Issues And Power Of Attorney
- Power of Attorney 101
- Power Of Attorney And Its Validity
- Power of Attorney: A Brief Overview
- Power of Attorney: Should You Get One?
- Power of Attorney: What to Consider in Choosing an Attorney-in-Fact
- Preparing for Your Future? Consider a Health Care or Medical Power of Attorney
- Seven Steps in Preparing a Power of Attorney
- The Pros And Cons Of The Power Of Attorney
- Types Of Power Of Attorney
- Understanding The Power Of Attorney
- Watching It: Power Of Attorney And Problems}
- What Is The Durable Power Of Attorney For?
- What Power of Attorney Is
- Why Do You Need to Prepare a Power of Attorney?