Naming a power of attorney can allow you to make sure your financial and legal issues are tended to if something were to happen to you.
Simply put, a durable power of attorney (DPOA) goes into effect as soon as the paperwork is signed and expires when you die. That differs from a more limited power of attorney. As people get older, establishing a DPOA is common to help manage finances. By appointing a power of attorney when one is of sound mind, this person can handle paying bills, managing bank accounts, overseeing investments, and preparing and filing tax returns on your behalf.
Let’s say you don’t want to name a POA for whatever reason. If something happens to you, or you begin to mentally degrade and can’t make financial or legal decisions for yourself, a potential agent may be named your guardian or conservator by the court. This can be time-consuming and expensive, not to mention stressful. Plus, there’s a chance the court could name a person that you or your family members don’t want to serve as your guardian, and there’d be very little you can do to change that.
Does naming a POA make you feel nervous (this person will have complete access to your finances after all), or do you view it as the responsible thing to do?
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.