Unfortunately, most people will lose the ability to handle their own property and money at some point during their life, be it due to illness, injury, or other physical and/or mental deterioration. The thought of becoming disabled or incapacitated is unpleasant and troubling to everyone, and it is because of this that many people do not do any planning to prepare for this situation. As difficult as it is to think about, planning for incapacity can be one of the best financial decisions you can make. A Durable Power of Attorney is one way ensure that your money and property are handled by the person of your choosing when you are unable to manage your affairs yourself.
What is a Durable Power of Attorney?
A Durable Power of Attorney is a legal document that gives the person you appoint as your agent the power to handle your financial affairs. For example, your agent could sign checks for you, pay your bills, open bank accounts or credit cards, initiate or defend a lawsuit on your behalf, sell or purchase property, etc.
Giving a person the ability to control your assets can be frightening, however there may come a time when it is necessary. You should always keep in mind that even though you have given someone these powers, that person can only use them for your benefit. He or she cannot use your money for his or her own purposes or for the purposes of anyone except you.
There are two kinds of Durable Powers of Attorney: Springing and General. A Springing Durable Power of Attorney only takes effect when your personal physical certifies in writing that you are no longer capable of controlling your finances yourself (i.e. when you have become incapacitated). A General Durable Power of Attorney is effective as soon as it is signed, witnessed, and notarized, which means that your agent can act on your behalf immediately, whatever the circumstances.
Unfortunately, most people will lose the ability to handle their own property and money at some point during their life, be it due to illness, injury, or other physical and/or mental deterioration. The thought of becoming disabled or incapacitated is unpleasant and troubling to everyone, and it is because of this that many people do not do any planning to prepare for this situation. As difficult as it is to think about, planning for incapacity can be one of the best financial decisions you can make. A Durable Power of Attorney is one way ensure that your money and property are handled by the person of your choosing when you are unable to manage your affairs yourself.
What is a Durable Power of Attorney?
A Durable Power of Attorney is a legal document that gives the person you appoint as your agent the power to handle your financial affairs. For example, your agent could sign checks for you, pay your bills, open bank accounts or credit cards, initiate or defend a lawsuit on your behalf, sell or purchase property, etc.
Giving a person the ability to control your assets can be frightening, however there may come a time when it is necessary. You should always keep in mind that even though you have given someone these powers, that person can only use them for your benefit. He or she cannot use your money for his or her own purposes or for the purposes of anyone except you.
There are two kinds of Durable Powers of Attorney: Springing and General. A Springing Durable Power of Attorney only takes effect when your personal physical certifies in writing that you are no longer capable of controlling your finances yourself (i.e. when you have become incapacitated). A General Durable Power of Attorney is effective as soon as it is signed, witnessed, and notarized, which means that your agent can act on your behalf immediately, whatever the circumstances.
View the full article: http://www.mwm-law.com/articles/power_of_attorney.html
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