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* Durable
Power of Attorney- A durable power of attorney is also called DPOA. This
document is normally several pages long and each person needs his or her own. This appoints someone, such as a spouse or a trusted relative,
to act for you as a financial manager if you are unable to do so for some
reason. This could be a temporary or a long term appointment.
Some powers of attorney are limited and others have a broad scope of powers.
Q. Who should have a Power of Attorney?
Anyone who has assets or may need debts paid or assets managed.
But the group of people who needs it the most, seem to wait too long to get one.
Anyone over age 60 or who has poor health should have one in place.
Q.
What does an Attorney Drafted Power of
Attorney Cost? Most
of the time a Durable Power of Attorney depends on the complexity of the
document. Generally speaking, it can cost from $50 to $250 depending how
complex it needs to be. Your Power of Attorney should be one that is NOT a fill in the blank form that is
generic, but one that is prepared to suit your needs based on the information you provide. Most fill in the blanks DPOA's do
not list everything or only list things that may not pertain to you. Plus, if the blanks
are not properly filled in, it may be completely ineffective.
Q. Whom should I name as my attorney-in-fact?
Most of the time the primary agent is your spouse if you
are married. But if your spouse is in poor health or may be unable to act
on your behalf, you want to have at least another subsequent agent. It is
not uncommon to have two or three alternate agents or sometimes even having two
agents working jointly.
Q.
Is a power of attorney revocable?
YES!
You can revoke it at any time and you can change who will act as your agent.
The power of attorney has a limited effective span.
Q.
Can I limit the agent powers?
Yes,
you can limit the powers or make it only effective upon certain conditions.
You might want to give your agent the right to sell your real property but only
if certain conditions have been met such as long term placement in a heath
care facility or when a doctor indicates that the patient is no longer able to
care for themselves. It is up to you what limits you placed in it.
Q.
Does limited power of attorney cover my health care needs?
Generally powers of attorney for
finances do not cover health care issues. Perhaps you want your
agent to have specific power over your finances but want someone else to have
power over your health issues. Also, you would not want a health
care provider seeing what finances you have, you'd want to just limit that to
health care issues, not the money issues.
Limiting certain powers.
I normally recommend that the agent does not have the right to change the life
insurance beneficiary, retirement beneficiary or to change any of the trust
unless it is the surviving spouse.
If this is
a second marriage with children from another marriage, I would recommend
limiting the right to make changes to the trust since it could disrupt the
distribution to the children of that person. A durable power
of attorney is supposed to help manage the assets until the distributions of the
trust, not to change the intent how it is supposed to be distributed.
Convenient service- Notary can travel to you!
After your Power of
Attorney is prepared by my office, an independent notary can travel to
the hospital, nursing home or residence to deliver the document and get it
notarized. The document can be prepared quickly over the
telephone, fax, or e-mailed with the important information you provide!
Estate Planning Documents
Available!
If you need a
power of attorney, limited power of attorney or special need power
of attorney, don't hesitate, call now!
(619)
447-6780
If you
need estate planning, call for a consultation. Trust
portfolios include: Trust Certifications, Pour Over Wills, Physician
Directives, Health Care directives, Durable Powers of
attorney for health and finances, revocable trust, etc.
If your
estate has a gross value over $100,000, you should have a living trust and all
the supporting documents. If you own any real property in California, a living
trust protects your assets! Special discounts to Seniors and Military.
I will
travel to your home, hospital or to an agreeable location when
needed. A Mobile Notary is also available.
More
information regarding Powers of Attorneys.
WHAT IS THE OBLIGATION OF THE AGENT?
The Agent is obligated to act in the best interests
of the Principal, and to avoid any "self-dealing." Self-dealing is acting to
further the selfish interests of the Agent, rather than the best interest of
the Principal.
An Agent appointed in a Power of Attorney is a
fiduciary, with strict standards of honesty, loyalty and candor to the
Principal. An Agent must safeguard the Principal's property, and keep it
separate from the Agent's personal property. Money should be kept in a
separate bank account for the benefit of the Principal. Agents must also keep
accurate financial records of their activities, and provide complete and
periodic accountings for all money and property coming into their possession.
Make clear to your Agent that you want accurate
records of all transactions completed for you, and to give you periodic
accountings. You can also direct your Agent to provide an accounting to a
third party-a member of your family or trusted friend-in the event you are
unable to review the accounting yourself.
Is it possible for an Agent to steal my
money and property?
Yes. A Power of Attorney can be abused, and
dishonest Agents have used Powers of Attorney to transfer the Principal's
assets to themselves and others. That is why it is so important to appoint
an Agent who is completely trustworthy, and to require the Agent to provide
complete and periodic accountings to you or to a third party.
Can a transfer of a Principal's assets to other
people be a good thing?
Yes. A Principal may want to authorize
transfers or gifts property for estate planning and other valid purposes.
New statutory short-form Powers of Attorney in New York State permit Agents
to make gifts to members of the Principal's family, if the Principal so
authorizes in the Power of Attorney. The Principal can also customize a
Power of Attorney to permit the Agent to make gifts to non-family members.
Who monitors the actions of my
Agent?
There is no official or government monitoring of
Agents acting pursuant to Power of Attorney. That is the responsibility of the
Principal. It is therefore important to insist that your Agent keep accurate
records of all transactions completed for you, and to provide you with
periodic accountings. You might also direct your Agent to give an accounting
to a third party in the event you are unable to review the accounting
yourself.
Do I need to have my signature witnessed on a
Power of Attorney?
Yes. Your signature on the Power of Attorney
must be witnessed by a Notary Public and you must provide a fingerprint.
Do I need a lawyer to prepare a Power of Attorney?
No. You're not required to hire a lawyer.
However, because a Power of Attorney is such an important legal instrument,
it is my opinion if you have substantial assets, over age 60 or in poor health, be a good
consumer and have an attorney draft one for you. If you are 18 years
of age and don't have assets, then the "form" kind of document is
acceptable in most cases. However
by the time most people reach age 30 with children with money issues, an attorney
prepared document designed for you, is something that is worth more than the small fee. Most
durable powers of attorney cost around $100.00 unless your estate is very
large.
Have an attorney update your durable power of
attorney. A POA is not effective if it is not current powers of attorney. No
matter that your age you should have a power of attorney, Looking for an agent,
able, trust, durable power attorney, powers attorney, durable power, principal?
Disclaimer
- Be
sure to read the disclaimer for this website. This website is for informational
purposes only. NO legal advice shall be construed by reading the information
provided here or in the informational booklets/pamphlets. Buying any
informational booklet does NOT create any attorney/client relationship. After a
retainer agreement has been signed by the perspective client and attorney, then
representation commences.
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