Nicolosi & Associates' Trusts and Estates attorneys can help you set up a durable power of attorney and put your affairs in order before anything unpredictable can happen to you.
The durable power of attorney for property is a very important estate planning instrument. This document allows the person you appoint, known as your agent, to act in your place for financial purposes when and if you become incapacitated. If this occurs, the person you select will be able to step in and take care of your financial affairs on your behalf. Without a durable power of attorney, no one can represent you unless a court first appoints a conservator or guardian. The court process takes time, costs money, and the judge may or may not choose the person you would have selected. In addition, under a guardianship or conservatorship, your representative may have to seek court permission to take planning steps that he/she could implement immediately under a simple durable power of attorney.
A power of attorney for property may be limited or general. A limited power of attorney may simply give someone the right to sign a deed to property or allow a person to sign checks for you on a day when you are out of town. A general power of attorney is comprehensive and gives your agent all the powers and rights that you have yourself over your property.
A power of attorney may also be either “current” or what is referred to as, “springtime.” Some powers of attorney take effect immediately upon their execution, even if the understanding is that they will not be used until and unless the grantor becomes incapacitated. This is known as the current power of attorney. However, the document can also be written so that it does not become effective until such incapacity actually occurs. This is known as a “springtime” power of attorney. The selection of current or springtime should be clearly set forth in the document itself.
While you should seriously consider executing a durable power of attorney, if you do not have someone you trust to appoint, it may be more appropriate to have the probate court looking over the shoulder of the person who is handling your affairs through a guardianship or conservatorship. In that case, you may wish to execute a limited durable power of attorney simply nominating the person you want to serve as your conservator or guardian.
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