Naming a power of attorney is easier said than done. You could make just any decision, but doing this will not give you the confidence you need.
Instead of rushing this decision and potentially making a mistake, it would be in your best interest to think it through from start to finish. You really need to think about who would make the best power of attorney.
Since no two people are identical, the process you follow to name a power of attorney will not be the same as the next person. Furthermore, your situation will not be exactly the same, such as why you are naming a power of attorney.
Even with all these challenges standing in your way, it is time to move forward and put this behind you once and for all. These challenges will seem much smaller once you put yourself on the right track.
Getting Started
In short, a power of attorney is typically appointed for a specific purpose or to provide protection in the event that you are incapacitated and unable to make your own decisions.
Think about it this way: if you become incapacitated, such as due to a serious illness, and you don’t have a power of attorney, nobody is able to make legal and financial decisions on your behalf. Do you want to find yourself in this position?
The person you name as your power of attorney can be responsible for a variety of tasks, including but not limited to:
- Paying bills
- Making bank transactions
- Managing real estate and insurance
- Preparing and filing tax returns
At some point, you need to answer this question: what type of power of attorney are you interested in? Once you know what type of power of attorney is best, you can then make a more informed decision as to which person suits your situation. Here are your three options:
- Durable power of attorney. This goes into effect once you sign the power of attorney and expires when you pass on.
- Non-durable power of attorney. This goes into effect once you sign the power of attorney and expires if you are ever declared mentally incompetent.
- Springing power of attorney. This goes into effect if a particular event or condition takes place, such as you being declared incompetent. It then expires when you pass on.
Who is Best for the Job?
To this point, you have been collecting information in regards to the finer details of a power of attorney. Now, it’s time to learn more about finding the person who is best for this important job. Here are some things to consider:
- You must find a person who is willing to act as your power of attorney.
- The person should be trustworthy and honest, as they will be staffed with some important responsibilities.
- Don’t wait to name a power of attorney, because until you do there could be gray area in regards to who is in charge if you are unable to make decisions.
Tip: there may come a point when you need to change your power of attorney. There are many reasons why this could happen. For instance, you may have a falling out with the power of attorney that you first selected. Or maybe this person has passed on. If a change is necessary, don’t wait to make it legal.
Now that you have plenty of information on naming a power of attorney, you should be able to make this decision in the near future. Once you do, you will feel better about your estate plan.
Are you still wondering if now is the time to do estate planning? Do you continue to put off the need for a power of attorney? If you find yourself in this position, don’t wait to download our free report entitled “Fifteen Common Reasons To Do Estate Planning.”
With this report, you can learn more about estate planning. It will show you why now is the best time to create an estate plan. And of course, it will touch on a variety of details, all of which can put you and your family in a better position now and in the future.
Let this free report be your guide!
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