A lot of people want to know…what is a power of attorney…and who needs one? You need one! You, the principal, decide on an agent who will handle your money situation. The document that appoints that agent is the power of attorney [POA] for finances.
The POA helps ease the burden of handling financial affairs; and gives your agent that responsibility, whether you are competent or incapable.
Your agent can lend and borrow money, file taxes, make business transactions, open and close bank accounts, and apply for credit cards, on your behalf.
MoneyTalksNews discusses several types of POA's you can use…
Durable power of attorney continues to take effect when you become incapacitated.
A regular power of attorney ends when you are no longer able to make legal decisions.
Limited power of attorney gives your agent abilities only for a limited time, and for certain reasons.
Medical power of attorney allows someone to make medical decisions on your behalf.
Click here for more info on why you need a power of attorney.
Once you are ready to make a move on drawing up a power of attorney, it is time to figure out who you can rely on to be your agent. This is the person who will be in charge of your finances. Caring.com recommends…
Choosing a power of attorney agent who is capable of meeting your financial needs. Make sure the person can handle it, without having to hire managers or lawyers.
The agent should live close to you, all the people involves, and the assets.
Pick someone who will put in time and effort to take care of your duties.
Name a successor agent in the power of attorney, just in case the agent is unable to do the job.
If you execute a general power of attorney to become effective while you are still competent, make sure it is someone who will not try to take over more responsibility than you are ready to relinquish.
Click here for more info on choosing an agent.
Do you suspect your agent has committed fraud? Click here for more information.
To contact Adult Protective Services, click here.
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