Creating a financial power of attorney can be a great way to ensure that your financial affairs are taken care of if you ever become incapacitated. When choosing who to entrust your financial affairs to, you need to choose someone you trust.
The financial power of attorney may not be the first thing you think of when you consider who will take care of your finances if you become incapacitated. However, it can be a valuable tool to use in the event that you become sick or injured.
There are several types of financial powers of attorney. Some of them are better than others. It’s important to understand the differences before you create one. There are also some special clauses that you may not know about. It’s also important to keep in mind that some financial institutions will only accept a document that is less than three years old.
A financial power of attorney is also a good way to protect your loved ones in the event of a financial catastrophe. For instance, if you have a sick spouse who is planning to go out of town for an extended period of time, it’s likely that they will need to be able to make financial decisions on your behalf. A power of attorney can help them ensure that your financial affairs are handled in a manner that is consistent with your wishes.
One of the best reasons to create a financial power of attorney is that it may help you avoid debt in the event that you become incapacitated. You may have a spouse who needs to take care of your finances, but it may be difficult to make sure that you’re not going to get into trouble. A power of attorney can help ensure that your spouse isn’t enticed by a financial scam.
If you’re unsure what the best financial power of attorney is for you, talk to an estate planning attorney to help you determine which one is right for you. You may also want to consider using more than one agent. This can make the process of creating your financial power of attorney a lot easier.
You should also take the time to make sure that you have a clear understanding of the powers that your financial power of attorney grants to your agent. In particular, you should take note of the ones that have the biggest effect on your life. A power of attorney is also a good way of ensuring that your dependents are taken care of in the event that you become incapacitated.
The FPOA must have the following features: a clear statement of what your agent can do for you; a legal authorization; and a list of your rights over tangible and intangible property. You should also consider the following: whether or not you should use a notary; whether or not you should be able to re-sign the document; and whether or not your agent should be able to do anything you would do for yourself.