Did you know that a power of attorney, like a Will, can be challenged by concerned or disgruntled loved ones? This is especially true when the person making the power of attorney is elderly. Family members might be concerned about a lack of mental capacity or about their loved one being coerced into appointing an agent against their will. If you’re worried that your family members might challenge your power of attorney, there are a few steps you can take ahead of time to minimize the … [Read more...] about Minimizing Challenges to Your Power of Attorney
Power of Attorney
Part of having a complete estate plan is thinking ahead about who should be in charge of your finances if you become mentally incapacitated at some point during your life. One of the essential documents in your incapacity plan is a Financial Power of Attorney, and many people have a Durable Financial Power of Attorney. What Makes it Durable? With a Durable Power of Attorney, you appoint an agent to manage your assets and make financial decisions for you, and not only does your agent have … [Read more...] about What Does the “Durable” in Durable Power of Attorney Mean?
When you establish a Financial Power of Attorney, it is with the intent of appointing a trusted person to take care of your finances in the event of your disability. But did you know that not all Powers of Attorney allow your agent access to your retirement plan? In order for your agent to have the authority to access and manage your 401(k), IRA, or other retirement plan, your Power of Attorney must contain specific language authorizing such access. If you have a do-it-yourself Power of … [Read more...] about Your Power of Attorney Might Not Work for Your Retirement Plan
When you designate someone as your agent under a Financial Power of Attorney, how long does that person have the authority to act on your behalf? If it’s a Durable Power of Attorney, then your agent’s authority continues even if you become mentally incapacitated, and it terminates under a limited number of circumstances. Revocation Of course, as the person who appointed your agent, you have the right to revoke your Power of Attorney, terminating your agent’s authority, at any time during your … [Read more...] about Does a Power of Attorney Expire?
If someone close to you has executed a Power of Attorney appointing you attorney-in-fact, you should feel honored. That person – called the “principal” – has placed a great deal of trust and confidence in you. You might also be a little concerned. After all, one of the things you’re authorized to do, as attorney-in-fact, is to sign for debts on behalf of the principal. In fact, the Power of Attorney might even authorize you to buy property and sign for a mortgage in the name of your friend … [Read more...] about Does Signing as Attorney In Fact Make You Personally Responsible For a Debt?