by which of the following persons would a power of attorney most likely be used?

What is power of attorney?

Jan 12, 2022 · You can't get a power of attorney to act for someone after he's died, and an existing power of attorney becomes invalid upon the death of the principal—the individual who gave you the right to take certain actions on his behalf. 1 . Someone is still going to have to take care of his affairs after his death, but it won't necessarily be the ...

What is a'power of attorney'?

Which discriminatory factor has been used most often by the courts to establish legal rules regarding voir dire? Race. Should a judge determine an attorney's opening statement grossly improper, which of the following is the most extreme response available to the judge? ... Which of the following persons would most likely be declared incompetent ...

Who is the best agent under a power of attorney?

A durable power of attorney is used when the account owner has diminished physical or mental capacity. It is durable because it survives the client becoming legally incompetent (but does not survive death). ... Which of the following individuals could most likely open an account at a FINRA member firm without notifying or receiving permission ...

Can a power of attorney have more than one agent?

A Power of Attorney is a formal legal document that gives one person the permission to act on another’s behalf. While the word attorney is part of the name of this legal document, it has nothing to do with being an attorney or requiring that the person with the power to sign documents on behalf of another has to be an attorney.

Which one of the following lacks legal capacity to enter into a binding contract?

Minors (those under the age of 18, in most states) lack the capacity to make a contract. So a minor who signs a contract can either honor the deal or void the contract. There are a few exceptions, however. For example, in most states, a minor cannot void a contract for necessities like food, clothing, and lodging.

Which of the following persons would be responsible to her employer for results only?

24. Which of the following persons would be responsible to her employer for results only? Explanation: An independent contractor is a person who sets her own schedule, works with little supervision, and is paid for each task accomplished, often by commission.

When a contract is entered into based strictly on the actions of the parties involved it would be considered to be which type of contract?

An implied contract is a legally-binding obligation that derives from actions, conduct, or circumstances of one or more parties in an agreement. It has the same legal force as an express contract, which is a contract that is voluntarily entered into and agreed on verbally or in writing by two or more parties.

Which of the following easement runs with the land and is binding on all subsequent owners?

Which of the following easements runs with the land and is binding on all subsequent owners? Explanation: An easement that runs with the land, binding subsequent owners of the servient tenement for the benefit of subsequent owners of the dominant tenement, is called an easement appurtenant.

Which of the following is the customary method through which a buyer's agent may be compensated?

Which of the following is the customary method through which a buyer's agent may be compensated? Explanation: In most cases, a buyer's agent will be paid through a commission split, in which the buyer's agent receives a portion of the commission paid to the listing agent.

Which of the following is a requirement for a tenancy in common relationship to exist?

Elements of joint tenancy are possession, interest, time, and title. The only element required in a tenancy in common is possession.

What kind of contract is based on the conduct of the parties?

implied contractAn implied contract arises from the conduct of the parties. The contract creates legally binding obligations between parties. The contract is not based on any written or oral agreement between the parties. An example of an implied contract is implied warranty arising upon purchase of a product.Mar 11, 2022

When someone is authorized to act on behalf of another is governed by?

The law of agency is an area of commercial law dealing with a set of contractual, quasi-contractual and non-contractual fiduciary relationships that involve a person, called the agent, that is authorized to act on behalf of another (called the principal) to create legal relations with a third party.

What type of contract is an agreement between the parties in which the agreement has been inferred?

An implied-in-law contract is a contract in which agreement between parties has been inferred from their conduct.

Which of the following is an example of an easement?

An easement is a limited right to use another person's land for a stated purpose. Examples of easements include the use of private roads and paths, or the use of a landowner's property to lay railroad tracks or electrical wires.Dec 3, 2021

What does runs with the land mean?

Running with the land refers to easements and other rights that remain with property even after being transferred. For example, if a property has an easement that runs with land to cross over the neighboring land, a person who buys the property could also cross the neighboring land.

What is an easement in property law?

An easement is a right which the owner or occupier of certain land possesses, as such, for the beneficial enjoyment of that land, to do and continue to do something, or to prevent and continue to prevent something being done, in or upon, or in respect of, certain other land not his own.

What does POA mean in a power of attorney?

The POA gave you the authority to act on his behalf in a number of financial situations, such as buying or selling a property for him or maybe just paying his bills.

What happens if you don't leave a will?

When There's Not a Will. The deceased's property must still pass through probate to accomplish the transfer of ownership, even if he didn't leave a will . The major difference is that his property will pass according to state law rather than according to his wishes as explained in a will. 3 .

Can a deceased person's bank account be frozen?

As a practical matter, most financial institutions immediately freeze the accounts of deceased individuals when they learn of their deaths. The freeze remains in place until they're contacted by the executor or administrator of the estate. If you were to attempt to use the POA, it would be denied.

Who is the custodian of an IRA?

The custodian—not the beneficial owner (minor)—is the person who has the authority to make investment decisions for an account. Any tenant in a joint account may give instructions for the account. One of the differences between a traditional IRA and a Roth IRA is.

What is JTWROS account?

A JTWROS account specifies that the assets go to the survivor and that overrules any will. An IRA (or any qualified retirement plan) always has a designated beneficiary and that supersedes any will. Anything other than the assets in the JTWROS account or the IRA will go to the daughter.

How long does it take to rollover an IRA?

To avoid taxation (and possible penalties as an early distribution), the rollover must be completed within 60 days. In a rollover from one IRA to another IRA, or from an employer-sponsored retirement plan to an IRA, the owner of the plan receives the funds.

What is a new account form?

a new account form and a limited power of attorney. a margin agreement and a loan consent form. When a customer wants to give trading authorization or discretionary privileges to a third party in a cash account, a member firm requires a new account form (as with all new accounts) and a limited power of attorney.

How much can a wife contribute to an IRA?

The wife may contribute a maximum amount of $6,000. Because the husband is 51, he is eligible to contribute an additional $1,000 per year (the catch-up provision applied to those age 50 and older) for a contribution of $7,000. One of your customers has maintained a traditional IRA for the past 15 years.

What is account recommendation?

Account recommendations include recommendations of securities account types generally (e.g., to open an IRA or margin account), as well as recommendations to roll over or transfer assets from one type of account to another (e.g., a workplace retirement plan account to an IRA).

What is the penalty for early withdrawal of Roth IRA?

The customer would have an early withdrawal penalty of $10. A 10% early withdrawal penalty applies to the taxable amount withdrawn for those aged less than 59½.In a Roth IRA, the investment is made with after-tax dollars. Therefore, only the increase above the investment is subject to an early withdrawal penalty.

What is an administrator in a will?

Administrator – When an individual dies intestate (without a will), the Surrogate’s Court appoints an administrator to protect the assets of the estate and to make sure they are distributed in accordance with law. An administrator receives Letters of Administration from the court, which are proof that this person has authority to act on behalf ...

What is probate in probate?

Probate – Probate means to formally bring the will before the Surrogate’s Court. Once all the procedures have been completed, all the proper forms signed, all estate taxes paid, and the assets distributed according to the wishes of the testator/testatrix, the will is said to have “gone through probate.”.

Why do people buy life insurance?

Life insurance is often purchased as a safety net for families in the event the primary income provider dies unexpectedly. It is also used by partners in a business to help the remaining living partners financially in the event of the unexpected death of a partner would put the business in financial jeopardy.

How many witnesses are needed to sign a will in New York?

Witnesses – In New York, at least two witnesses must be present when the testator/testatrix makes or executes (signs) the will. WILLS: Wills require very specific legal formalities to be valid. A will must be in writing (New York Estates, Powers and Trusts Law [EPTL] Section 3-2.2).

What is a beneficiary in a will?

Beneficiary – A person who receives money or property under a will, trust or insurance policy. Decedent/Deceased – The person who died. Dying Intestate – Dying without a will. Estate – An estate is all the personal and real property owned by a person when he/she dies. Estate Taxes – Taxes owed to the federal government or the State ...

What is life insurance?

Life Insurance – Life insurance is a contract between an individual and a life insurance company where the company collects a yearly premium in exchange for the promise to pay a stated sum upon the death of the individual.

What is a living will?

Living Will – A formal legal document made by a person prior to a life-threatening disease or injury, outlining the medical treatment a person wants if the person cannot express such themselves . A Living Will is usually signed in conjunction with a Health Care Proxy.

When should a power of attorney be considered?

A power of attorney should be considered when planning for long-term care. There are different types of POAs that fall under either a general power of attorney or limited power of attorney . A general power of attorney acts on behalf of the principal in any and all matters, as allowed by the state.

Why do you need a power of attorney?

There are many good reasons to make a power of attorney, as it ensures that someone will look after your financial affairs if you become incapacitated. You should choose a trusted family member, a proven friend, or a reputable and honest professional.

Why does a power of attorney end?

A power of attorney can end for a number of reasons, such as when the principal dies, the principal revokes it, a court invalidates it, the principal divorces their spouse, who happens to be the agent, or the agent can no longer carry out the outlined responsibilities. Conventional POAs lapse when the creator becomes incapacitated.

What is Durable POA?

A “durable” POA remains in force to enable the agent to manage the creator’s affairs, and a “springing” POA comes into effect only if and when the creator of the POA becomes incapacitated. A medical or healthcare POA enables an agent to make medical decisions on behalf of an incapacitated person.

How to start a power of attorney?

A better way to start the process of establishing a power of attorney is by locating an attorney who specializes in family law in your state. If attorney's fees are more than you can afford, legal services offices staffed with credentialed attorneys exist in virtually every part of the United States.

Who is Julia Kagan?

Julia Kagan has written about personal finance for more than 25 years and for Investopedia since 2014. The former editor of Consumer Reports, she is an expert in credit and debt, retirement planning, home ownership, employment issues, and insurance.

Why do parents need POAs?

Ask parents to create POAs for the sake of everyone in the family—including the children and grandchildren— who may be harmed by the complications and costs that result if a parent is incapacitated without a durable POA in place to manage the parent’s affairs.

When does a power of attorney take effect?

An immediate power of attorney document takes effect as soon as it’s signed. That said, most people don’t expect to use it until they’re legally incompetent, such as after a stroke that impairs cognitive ability. Depending on your state, the agent may or may not need to sign the document.

What is Durable Power of Attorney?

With durable power of attorney, the agent’s power continues indefinitely after the point when you’re legally not able to make your own decisions.

What is a POA?

People ask us a lot for the definition of a POA: A power of attorney document names someone (called the “agent”) to make legal decisions on another person’s behalf (the “principal”) if the person is not able to.

Is a non-durable power of attorney valid?

A non-durable power of attorney document, on the other hand, isn’t a “forever” thing, and it’s not intended for cases of incapacitation. In fact, it isn’t actually valid if you’re legally incompetent.

What is a springing POA?

Springing power of attorney is similar to immediate POA in that it works when you’re incapacitated. The difference is that it only “springs” into effect once you meet conditions you set to declare you legally incompetent.

What is the first step in estate planning?

A good first step if you know your relatives are doing estate planning is to check whether you’re named on any documents. Power of attorney enables your loved ones to handle critical financial matters for you if you can’t. It can even protect your spouse from being financially trapped if something happens to you.

Can you revoke POA?

The agent has legal access as soon as the POA takes effect, but you can revoke their power at any time or for any reason. And in the meantime, you won’t lose any of your own access or control over your accounts. Your agent has a fiduciary duty to act in your best interests, not theirs.