Question:
I keep hearing that it is important to have a power of attorney but I really do not know what it all means.
Answer:
The power of attorney provides the name of the person or persons who will handle your financial matters should you become incapacitated. There are many decisions that are time sensitive and, if delayed, could result in significant financial loss to you. The Power of Attorney allows you to designate a person, of your choice, to act on your behalf and ensure financial decisions are not unnecessarily delayed.
It is your “personal decision insurance”. Make sure you are covered.
A Power of Attorney is a document that gives another person or institution the right to take certain actions on your behalf. The scope of actions authorized is written within the Power of Attorney. A Power of Attorney can be effective immediately or it can give the agent the authority to act only after you become incapacitated. The latter is known as a springing Power of Attorney and requires proof of the your incapacity. Making the Power of Attorney effective immediately avoids this issue. However, unless directed to do so by you, the agent should not use the Power of Attorney if you are capable of making decisions.
There are several forms that Power of Attorney can take, including limited, general and health care. Depending upon your personal circumstances, there may be a need for all three to ensure continuity in business transactions.
The Limited Power of Attorney does not provide broad powers. It is generally used in the purchase and sale of real estate when you are unavailable on important signing dates or for the negotiation of securities transactions within an investment account.
A General Power of Attorney can grant "all-encompassing" authority for virtually any type of decision relating to all types of property.
The Health Care Power of Attorney is used to appoint a person who may make important medical decisions regarding a person’s care during incapacity.
Critical Note:
1. Regardless of the form of the Power of Attorney, it is imperative that your agent be carefully selected. Given the authority granted under any Power of Attorney, trustworthiness is the essential key.
2. The Power of Attorney terminates upon your death.
Have your questions answered by entering a comment or email us by going to http://www.ythlaw.com/
I keep hearing that it is important to have a power of attorney but I really do not know what it all means.
Answer:
The power of attorney provides the name of the person or persons who will handle your financial matters should you become incapacitated. There are many decisions that are time sensitive and, if delayed, could result in significant financial loss to you. The Power of Attorney allows you to designate a person, of your choice, to act on your behalf and ensure financial decisions are not unnecessarily delayed.
It is your “personal decision insurance”. Make sure you are covered.
A Power of Attorney is a document that gives another person or institution the right to take certain actions on your behalf. The scope of actions authorized is written within the Power of Attorney. A Power of Attorney can be effective immediately or it can give the agent the authority to act only after you become incapacitated. The latter is known as a springing Power of Attorney and requires proof of the your incapacity. Making the Power of Attorney effective immediately avoids this issue. However, unless directed to do so by you, the agent should not use the Power of Attorney if you are capable of making decisions.
There are several forms that Power of Attorney can take, including limited, general and health care. Depending upon your personal circumstances, there may be a need for all three to ensure continuity in business transactions.
The Limited Power of Attorney does not provide broad powers. It is generally used in the purchase and sale of real estate when you are unavailable on important signing dates or for the negotiation of securities transactions within an investment account.
A General Power of Attorney can grant "all-encompassing" authority for virtually any type of decision relating to all types of property.
The Health Care Power of Attorney is used to appoint a person who may make important medical decisions regarding a person’s care during incapacity.
Critical Note:
1. Regardless of the form of the Power of Attorney, it is imperative that your agent be carefully selected. Given the authority granted under any Power of Attorney, trustworthiness is the essential key.
2. The Power of Attorney terminates upon your death.
Have your questions answered by entering a comment or email us by going to http://www.ythlaw.com/
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