A Power of Attorney, or POA, gives someone of your choosing the ability to manage your financial affairs on your behalf. This can include writing checks, paying bills, investing assets, gifting assets, and selling a house. The authority can be temporary or permanent and can be very broad or limited to specific acts. How much authority the representative has is up to you.
There are two types of POAs – durable and nondurable – and they both work the same way with one important exception: a nondurable Power of Attorney allows someone to act on your behalf as long as you are of sound mind. If you become incapacitated, the nondurable POA automatically terminates.
A Durable Power of Attorney on the other hand, does not terminate and in fact, is specifically designed to address this concern. With this document, your designated representative will be able to step in and handle your affairs for you – again, in accordance with whatever terms and limitations you’ve laid out – for as long as you are unable to handle them yourself.
Without a Durable Power of Attorney, your family may need court approval to legally handle your financial matters.
So, how can you be sure that you have the right documents in place to protect your family and your assets? Call us today! Our experienced estate planning attorney can design a custom estate plan that’s just right for you and your first consultation is free.