You can give someone power of attorney (POA) to give that person the power to handle your legal and financial matters if you’re unable to handle them yourself − often due to health or mental issues.
You need to trust this person
Your POA has power over everything involving your finances. This includes paying bills, managing bank accounts, overseeing investments, signing contracts, and filing your taxes.
Who is a good person to pick?
Someone who’s good with money and paying bills on time, and has the ability to collaborate with attorneys, accountants, and other finance people is a plus. Most importantly, choose someone who won’t loot your savings account and disappear the moment you sneeze.
It comes in three flavors
A durable power of attorney goes into effect the moment the paperwork is signed and kicks in if you’re deemed mentally incompetent. A springing power of attorney is like a durable POA, but it kicks in − or “springs” into action − if you become seriously ill or injured. A limited power of attorney is used when you need someone to take care of a specific financial or legal task − and expires if the limited purpose of the power has been completed, when you die, or potentially when you become incapacitated.
How to create it
You can use an online legal service or work with a lawyer. It’s relatively fast and cheap online (usually between $15 and $50), but if you want a little more guidance and care, it may be smart to hire a qualified attorney.
Do you think naming a POA is an easy decision, or do you worry that you’ll choose the wrong person?
This article is provided by Everplans − a life and legacy planning company dedicated to transforming the way people get their families organized. For more information, visit: everplans.com
Neither Transamerica nor its agents or representatives may provide tax, investment, or legal advice. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely on their own independent tax and legal advisors and financial professional regarding their particular situation and the concepts presented herein.