Financial Power of Attorney
A durable financial power of attorney is an essential estate planning document for yourself and your family. A financial power of attorney is a document that creates an agency relationship between you (the "principal") and someone you designate (your "agent") to manage your financial interests. The State of Georgia has its own laws governing this power as do all of the other 49 states.
If you are not able to make decisions for yourself and you haven't prepared a durable power of attorney, a court might have to make important financial decisions for you. Your spouse, companion or family members will have to ask a court for authority over at least some of your financial affairs. This process can be timely and expensive and results in the appointment of a guardian or conservator. The process is normally public and can be humiliating.
An inexpensive and informal way of avoiding guardianship is the creation of the durable power of attorney. This document allows for the agent you designate to step into your shoes by allowing him or her to handle financial matters for you unless certain restrictions are applied by you. The Official Code of Georgia provides that the power granted to the agent by you can be durable and survive any incapacity. In essence, a financial power of attorney can be drafted so that it goes into effect as soon as you sign it and remains in power after your mental incapacity.
You can also limit the power or time that the agency is in effect. For example, if you are going on vacation and need someone to pay bills for you or sign a deed on your behalf, the document can authorize only those specific acts to be performed during a limited time. Or, you can specify that your power of attorney does not go into effect unless a doctor certifies that you have become incapacitated; this is called a "springing" durable power of attorney. The springing power of attorney is useful to prevent the agent from performing duties that you can perform for yourself while you are still able.
This document should be created for two reasons. The first, as mentioned above, is when you need to complete a financial transactions during a time you will not be present yourself. The second reason for preparation is planning for future incapacity. For this reason, the durable power of attorney is one of the most important legal documents you may execute. If you lose the mental capacity to handle your own financial affairs, without the durable power of attorney, your family will need to have a guardian or conservator appointed. A valid durable financial power of attorney is a powerful guardianship/conservatorship avoidance document that is more preferable than court proceedings.
The durable financial power of attorney is a powerful document that should be a part of everyones estate plan. The protection it affords and the comfort it can provide are worth the time talking to an attorney about the document. Please feel free to contact me if you would like to discuss your choices concerning your autonomy with this or other estate planning instruments.
If you are not able to make decisions for yourself and you haven't prepared a durable power of attorney, a court might have to make important financial decisions for you. Your spouse, companion or family members will have to ask a court for authority over at least some of your financial affairs. This process can be timely and expensive and results in the appointment of a guardian or conservator. The process is normally public and can be humiliating.
An inexpensive and informal way of avoiding guardianship is the creation of the durable power of attorney. This document allows for the agent you designate to step into your shoes by allowing him or her to handle financial matters for you unless certain restrictions are applied by you. The Official Code of Georgia provides that the power granted to the agent by you can be durable and survive any incapacity. In essence, a financial power of attorney can be drafted so that it goes into effect as soon as you sign it and remains in power after your mental incapacity.
You can also limit the power or time that the agency is in effect. For example, if you are going on vacation and need someone to pay bills for you or sign a deed on your behalf, the document can authorize only those specific acts to be performed during a limited time. Or, you can specify that your power of attorney does not go into effect unless a doctor certifies that you have become incapacitated; this is called a "springing" durable power of attorney. The springing power of attorney is useful to prevent the agent from performing duties that you can perform for yourself while you are still able.
This document should be created for two reasons. The first, as mentioned above, is when you need to complete a financial transactions during a time you will not be present yourself. The second reason for preparation is planning for future incapacity. For this reason, the durable power of attorney is one of the most important legal documents you may execute. If you lose the mental capacity to handle your own financial affairs, without the durable power of attorney, your family will need to have a guardian or conservator appointed. A valid durable financial power of attorney is a powerful guardianship/conservatorship avoidance document that is more preferable than court proceedings.
The durable financial power of attorney is a powerful document that should be a part of everyones estate plan. The protection it affords and the comfort it can provide are worth the time talking to an attorney about the document. Please feel free to contact me if you would like to discuss your choices concerning your autonomy with this or other estate planning instruments.
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