Every adult in this country should have a "durable power of attorney," which is one of the four important legal documents everyone should have. A durable power of attorney is basically a fill in the blank form document for estate planning every individual's estate plan has to include.When the individual has an accident, gets sick or otherwise goes down, the durable power of attorney allows someone else to take over management of the individual's assets and business affairs. The individual making out the durable power of attorney is called the "principal," and the person who will take over for the principal is called the "agent." A "durable" power of attorney is distinguished from a "general" power of attorney, because it has a provision in it that says that the powers of the agent will endure beyond the incompetency of the principal. Upon a determination that you are incompetent, any general power of attorney you have created will be deemed ineffective. It was finally recognized that the time when a power of attorney was really needed was after the principal couldn't function for himself or herself. Finally, laws were passed which made it so a power of attorney could "endure" after the incompetency of the principal.The use of a will and revocable living trust may be better understood, but don't dismiss the significance of a durable power of attorney. You are more likely to be rendered incompetent and unable to manage your financial matters than you are to die within the next few weeks. It is usually harder, from a legal standpoint, to take over a person's financial life and have them declared incompetent than it is to deal with a dead person's assets.Unless there is a durable power of attorney in place, it will be necessary for the court to appoint an agent or "conservator" for someone who has been determined to be incompetent. An important part of the durable power of attorney is the mechanism that will be used to declare the principal incompetent. A properly written durable power of attorney will allow the family to forego any court intervention for the transfer of responsibility to the agent. A principal can usually be declared incompetent, and unable to manage their business or financial transactions, if two doctors sign a statement affirming that the principal is incompetent. Sometimes a combination of clergy, trusted family members, or medical specialists can be used to verify a principal's incompetency. A principal can assure his affairs are properly dealt with, if his durable power of attorney gives the agent appropriate authority. In addition to a principal's financial matters, a durable power of attorney can give the agent authority to oversee the religious, social and medical concerns of the principal. When a durable power of attorney only deals with medical issues, it is called a "medical durable power of attorney." You can have a single document that includes the medical power of attorney, Health Insurance Portability and Accountability Act (HIPAA) agreement, and living will within your durable power of attorney, or you can keep them all as separate documents.All adult family members need a durable power of attorney, either combined as described above, or in distinct documents. Sign the documents and put them where your family can find them and they will be safe. A durable power of attorney can come to the forefront and save you time, money and aggravation at the time of a family or individual hardship.In the FREE DVD and book, you will learn about the importance of a durable power of attorney for your estate planning.Act now and order Guaranteed Millionaire with the FREE DVD, so you can eliminate estate taxes and get great asset protection.
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Every adult in this country should have a "durable power of attorney," which is one of the four important legal documents everyone should have. A durable power of attorney is basically a fill in the blank form document for estate planning every individual's estate plan has to include. When the individual has an accident, gets sick or otherwise goes down, the durable power of attorney allows someone else to take over management of the individual's assets and business affairs. The individual ...
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