A Power of Attorney is a legal document that enables you to give someone you trust the authority to act on your behalf.
This is most commonly seen in real estate negotiations, where one or both parties assign authority to their attorneys to negotiate on their behalf.
But a Power of Attorney can also be a handy thing to have on a personal level too. A general Power of Attorney would allow your spouse to pay your bills for example, access your checking account and even discuss payment options with creditors.
If you’re someone who travels frequently or expects to be away on an extended business trip, this might be a document you want to consider utilizing while you’re gone.
But should you become incapacitated, that POA will immediately be revoked to prevent someone from taking advantage of your diminished mental capacity.
That sounds like a good precaution in theory but then, who will take care of your financial affairs if you’re not able to do it yourself?
A Durable Power of Attorney can help.
Like the general POA, it gives someone you trust the ability to act on your behalf but instead of becoming invalid upon your disability, a durable POA continues to grant authority, even if you can no longer speak on your own behalf.
This ensures that your bills are paid and your financial affairs continue to be managed, no matter what the future might hold. Of course, you’ll want to make sure you choose someone that is completely trustworthy, so that there’s no funny business with your finances while you’re incapacitated.
To learn more about planning for disability, contact our office today.
- The Intersection of Asset Protection Planning and Estate Planning – Part I - September 28, 2022
- What’s Estate Planning Got to do with Interest Rates – Part II - September 21, 2022
- The Inflation Reduction Act - September 14, 2022
