who should i select as drable power of attorney

Full Answer

What is a power of attorney and do I need one?

A power of attorney is a legal document or contract that allows you to officially designate someone as your agent. Your agent, also known as an attorney-in-fact, can handle financial and legal matters on your behalf in the event that you become physically or mentally incapacitated.

Who should I Choose as my healthcare power of attorney?

Remember, your power of attorney is charged with making healthcare decisions on your behalf. As a result, you'll want to select someone who has some understanding of how medical processes work. This does not mean that you have to select a doctor or a nurse in the family.

Can a power of attorney make financial decisions for You?

In a power of attorney, you name someone as your attorney-in-fact (or agent) to make financial decisions for you. The power gives your agent control over any assets held in your name alone. If a bank account is owned in your name alone, your attorney-in-fact will have access to it.

Should I execute a durable power of attorney?

For that reason, most attorneys advise you to execute a durable power of attorney. The attorney will often hold the original power of attorney until it is needed as an extra protection. Choose wisely.

Who is the best choice for power of attorney?

There are no special qualifications necessary for someone to act as an attorney-in-fact except that the person must not be a minor or otherwise incapacitated. The best choice is someone you trust. Integrity, not financial acumen, is often the most important trait of a potential agent.

What characteristics would you look for when choosing someone to have power of attorney for you?

Since your power of attorney potentially will be handling your legal and financial affairs, you'll want to choose someone who either has some experience in these fields or has the personality and financial savvy to handle the decisions that may fall to him or her.

Should everyone have a lasting power of attorney?

Indeed a power of attorney is vital for anyone – regardless of age – who has money and assets to protect and/or who wants someone to act in their best interest in terms of healthcare choices should they be unable to make decisions for themselves.

Can my son be my power of attorney?

You can appoint all of your children as attorneys if you wish. However, you should think carefully about whether this is a good idea. It is natural that you want to treat your children equally but remember that being an attorney is a big responsibility.

What Does power of attorney allow you to do?

A power of attorney gives the attorney the legal authority to deal with third parties such as banks or the local council. Some types of power of attorney also give the attorney the legal power to make a decision on behalf of someone else such as where they should live or whether they should see a doctor.

Why is it important to name an executor in a will?

Naming a corporate executor relieves the family or particular family members from making difficult decisions that could potentially create family disunity.

What is the general power of attorney?

General Power of Attorney The general power of attorney is a broad mandate that gives an agent a lot of power to handle the affairs of a principal. The agent or the person designated to act on behalf of the principal is charged with handling several tasks.

What does Durable power of attorney mean in Florida?

A power of attorney terminates if the principal becomes incapacitated, unless it is a special kind of power of attorney known as a “durable power of attorney.” A durable power of attorney remains effective even if a person becomes incapacitated.

What is a durable financial power of attorney?

If you have an accident or illness that leaves you incapacitated, who will manage your financial and legal affairs on your behalf?

If you are incapacitated, who will perform these tasks on your behalf?

Under Virginia law, a durable financial power of attorney can answer these questions and save your family a lot of time and money. With a durable financial power of attorney, you can nominate who you want to manage your legal and financial affairs in the event of your incapacity.

Who should I choose to act as my agent under my durable financial power of attorney?

Here are some things to consider when deciding on who should serve as your agent (s):

What is a power of attorney?

A power of attorney is a document where you authorize someone, often called an agent, to act on your behalf should you no longer be able to do so. Examples include paying your bills, managing your investments. It can be limited to one decision or it can be so broadly written that the agent can do almost anything on your behalf.

What are the different types of powers of attorney?

There are 2 types of powers of attorney: 1 A non-durable power of attorney (which may be tailored to permit your agent to complete a single transaction) ceases when you lose mental capacity. 2 A durable power of attorney stays in effect if you experience diminished capacity or become unable to manage your own affairs.

When does a non-durable power of attorney cease?

A non-durable power of attorney (which may be tailored to permit your agent to complete a single transaction) ceases when you lose mental capacity.

Can an agent do anything on your behalf?

It can be limited to one decision or it can be so broadly written that the agent can do almost anything on your behalf. The authority you give is dependent upon the document’s language.

Is a power of attorney a good tool?

Powers of attorney are a wonderful tool in the hands of a trustworthy person. But because it comes with a tremendous responsibility, it can also be a dangerous tool in the hands of the wrong person. Learn all you can before choosing your power of attorney.

How to choose a power of attorney?

When choosing your power of attorney, talk to the person you are considering. Be sure that they feel they could serve in this capacity. Encourage the person to be honest.

Who Should You Pick as Your Power of Attorney?

Most people select their spouse, a relative, or a close friend to be their power of attorney. But you can name anyone you want: Remember that selecting a power of attorney is not about choosing the person closest to you, but rather the one who can represent your wishes the best. The key is that you trust the person completely. You also should feel comfortable discussing your healthcare wishes with them.

What to consider when choosing a power of attorney?

When choosing a power of attorney, it is important to consider the person's character and values. Ask yourself if this person can be trusted with such a big responsibility. Are they likely to follow through on the demands of being power of attorney? Will they follow your wishes? You’re trusting this person to speak on your behalf. As a result, you need to select someone whom you can count on and can be trusted. After all, they will be making decisions that will impact your life.

What to do if you feel pressured to change your power of attorney?

If you feel pressured to change your opinions, then that is a sign that this person would not make a good representative for you. You need to find someone who is willing to respect your wishes. If your selected person cannot do that, it's best to find someone else. The last thing you need is to deal with family peer pressure or to worry that your wishes will not be carried out.

Can a proxy be a healthcare delegate?

jurisdictions, a healthcare proxy may also fill this role. In this case, a loved one is chosen as your delegate only for medical decision-making ( not finances, administration of will, etc.).

Do you need a lawyer for a healthcare proxy?

In this case, a loved one is chosen as your delegate only for medical decision-making (not finances, administration of will, etc.). To assign a healthcare proxy, you'll fill out a document in a hospital setting and just need two witnesses to complete it—you do not need a lawyer for this purpose. A power of attorney, however, is a more formal document that can have medical as well as legal and financial implications.

Can you designate a power of attorney?

But really, you can designate your power of attorney anytime you want. You simply need to have an attorney draw up the paperwork. You also can specify when the duties of the power of attorney begin to take effect.

What is a durable power of attorney?

What would your family or loved ones do if you were injured or ill and unable to manage your own finances? Who would pay your mortgage, make decisions about your investments, or deal with your medical bills? A durable power of attorney is a legal document that addresses this exact situation. But what does it do, exactly, and how do you get one? Answers to these questions and more ahead.

Who should be the initial agent for a POA?

Instead, experts suggest naming the child who leaves nearest to you and may be most hands-on with your care as the initial agent, and then having another child or family member listed as a backup. It’s always smart to have a backup agent, in case something happens to the initial agent, and he or she isn’t able to carry out the duties of the POA.

Why is an attorney in fact important?

This important document empowers an appointed agent (also known as an attorney-in-fact) to make financial and legal decisions on your behalf. It’s durable because it remains in effect even if you become incapacitated for any reason.

What happens if you are unable to manage your own affairs?

So if you are unable to manage your own affairs for any reason—for example, you’re unconscious in the hospital, or you develop severe dementia—your agent can step in and pay your bills or file your taxes, deposit checks in your bank account, manage your investments, handle insurance issues, and make many other important decisions. ...

Can you override a power of attorney?

You still have the right to control your life, your money, your property, and your assets. And you can always override your agent, if you’re of sound mind.

Can you have two people in the same role?

You can have the same person fill both of these roles, or choose different people if you think that the best person to make decisions about your medical care is not the best person to manage your finances. ( But if you do pick two different people, make sure they can work well together.)

Can you have a power of attorney for health care?

You’ll also want to have a separate durable power of attorney for health care, or health care proxy, which appoints someone to make medical decisions on your behalf if you can’t speak for yourself. You can have the same person fill both of these roles, or choose different people if you think that the best person to make decisions about your medical care is not the best person to manage your finances. (But if you do pick two different people, make sure they can work well together.)

What is a power of attorney?

In a power of attorney, you name someone as your attorney-in-fact (or agent) to make financial decisions for you. The power gives your agent control over any assets held in your name alone. If a bank account is owned in your name alone, your attorney-in-fact will have access to it.

How effective is a durable power of attorney?

Consider your options. There are two types of powers of attorney. A durable power of attorney is effective when you sign it and survives your incapacity. A springing power of attorney springs into effect when you are incapacitated. A springing power of attorney seems more attractive to most people, but it is actually harder to use. Your agent will need to convince the bank that you are incapacitated and, even though the document spells out how to do that, your local bank branch often does not want to make that determination. Translation: your lawyer often needs to get involved. For that reason, most attorneys advise you to execute a durable power of attorney. The attorney will often hold the original power of attorney until it is needed as an extra protection.

What happens to a power of attorney when you die?

Power of attorney dies with you. Once you pass away, the document is no longer valid and your will then controls what happens to your assets. Fund your revocable trust. If you fund your revocable trust during your lifetime, you may not need to use your power of attorney although you should still have one just in case.

What to do if your named agent dies before you?

Name an alternate. If your named agent dies before you or is incapacitated, you want to have a back-up who can act. Also, consider nominating a guardian and conservator in your power of attorney in case one is needed down the road. Read the document. This seems obvious, but clients often do not read their documents.

Can a financial agent access your funds?

The unfortunate answer is “yes. ”. Since he will have access to your financial accounts, he can access your funds and use them for his own benefit. The agent does have a fiduciary duty to use the assets only for your benefit or as you direct in the document.

Can a power of attorney change bank account?

Depending on the language of the power of attorney, your agent may be able to change the ownership of your bank accounts or change your beneficiary designations. This is a common scenario in second marriages.

Can you have two people serve as a power of attorney?

The power of two. Consider naming two agents to act together if your state allows for it . While having two people serve can be cumbersome, it often is worth the extra effort to have an extra set of eyes on the use of the power of attorney. This can substantially reduce your risk and ensure your assets go to the people you’ve designated in your will.