Durable Financial Power of Attorney
A durable financial power of attorney (POA) is an inexpensive, reliable and fairly simple way to ensure that someone you want manages your finances in case you become incapacitated. It is not only good for you, it can even make life easier for your near and dear ones. This can come in particular use in avoiding court proceedings if you end up being unable to decide the future course yourself. Your family or friends in any place, such as Surrey, Yorkshire or London, will be saved from the trouble of getting a court’s approval to manage your finances, if you get legal help from professionals in Charter Legal firms.
When does the financial power of attorney start?
The drafting of this POA can be done so as to come into immediate effect after getting signed. A sizeable number of couples have active powers in case either one gets incapacitated or isn’t around for some reason. It is important to mark it as durable, or else the power will end if you get incapacitated. This can be customized to a ‘springing’ type also. In this case, the POA gets activated only after you have been certified to be incapacitated by a doctor. Also, as with the previous case, you need to specify that you are looking for a durable power of attorney.
An agent can be given a wide variety of tasks to perform once you get a durable power of attorney. This is totally dependent on you, and you can choose to adjust the agent’s tasks as you see fit. Some of the powers that can be given to the agent are listed here.
- Paying taxes
- Transfer of property to trusts
- Retirement account management
- Small-scale business operation
- Handle banking and finances
- Collect benefits such as Medicare and social security
- Use assets to run everyday expenses of you and your family
- Make investments in mutual funds, stocks, and bonds
- Property settlements.
The agent in question has to ensure a transparency and truth in their actions, and should avoid any conflict of interest. Charter Legal are particularly good at this type of transactions and provide all round settlement terms.
Drafting a durable financial power of attorney
Creating such a document is a simple task of filling out and signing forms that are typically a few pages long. It is advisable to have two such forms – one for the institutes that you are going to do business with and the other for yourself. You might be asked to sign the documents in the presence of witnesses apart from the mandatory notary public.
Duration of the power
The durable POA ends with your demise. The powers entrusted to your agent get blocked after you die. To continue those powers, you need to name the agent in your will. Other than that, you can revoke the POA any time you wish. If you have appointed your spouse as your agent, then the powers get terminated in the event of a divorce. Also, be sure to nominate an alternate agent, in case the first one isn’t available for some reason.
A durable financial POA is a tried and trusted way of ensuring that your future remains secure even after you suffer from some unwanted complications. Having a good firm to guide you through the process can make it even easier.