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What Is A Financial Power Of Attorney?
- A document in which you appoint someone to handle your financial or decisions other than health decisions.
- The person creating the document is the principal.
- The person appointed is the attorney-in-fact.
- Your attorney-in-fact will usually be a relative or friend (not an
actual attorney).
- The person appointed must be someone you trust.
- A power of attorney can be worded to specifically prevent the attorney-in-fact from transferring property to himself/herself.
- Any transfer of property from the principal to the attorney-in-fact without sufficient consideration are presumed to be made under undue influence.
When Should I Consider Making One?
- If you have a temporary illness or are in a hospital or nursing home.
- If you want to plan ahead for incapacity/disability.
Can You Give Me an Example?
- If you are unable to go to the bank, the attorney-in-fact could deposit
your money.
- If you cannot write, the attorney in fact could sign checks to pay
bills.
How Can I Control What My Attorney in Fact Does?
- The document should describe exactly what powers you are giving your
attorney-in-fact.
- You can limit the power to a single act or it can be very broad.
- The power can cover a limited period by stating the date you want
it to end.
How Long Does It Last?
- If there is no time limit stated, a regular Power of Attorney will
continue until you are not able to make your own decisions.
- When you are not able to make your own decision, or die, a regular Power of
Attorney ends.
- A Power of Attorney can remain in effect or take effect when you are not able to make your own decisions. This is a Durable Power of Attorney.
- A Durable Power of Attorney must clearly state that you want it to
remain in effect even if you are not able to make your own decisions.
- A Durable Power of Attorney ends upon death.
How Can I End a Power of Attorney?
- You can revoke or take away a Power of Attorney.
- This must be done in
writing.
- Your revocation must be sent to your attorney-in-fact and a copy to any alternates you have named.
- Anyone else your attorney-in-fact did business with should also receive
a copy.
- A Durable Power of Attorney ends upon death
DISCLAIMER: This information is not legal advice. If you have a legal problem, you should talk to a lawyer and ask for advice about your options.
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