A durable power of attorney is used to authorize someone to lawfully make decisions on your behalf about finances and health care. The ‘durable’ part keeps the power in place until it dies; allows actual attorneys to perform tasks such as paying bills, making deposits, filing tax returns, or obtaining medical records.
Without a durable power of attorney, relatives will not be able to provide any input on medical or financial decisions. To manage affairs, they must go to court to appoint someone as a lawyer and obtain permission to act on your behalf. This is not only inconvenient, but also adds to the existing burden of dealing with the crisis at hand. This can be avoided by preparing financial and medical POA forms.
The simplest way to execute these documents is to hire a lawyer. Other options include utilizing a legal service provider such as LegalZoom or purchasing a do-it-yourself kit via the Internet or an office supply store.
Financial POA is recommended for everyone having any kind of personal finance issues. This document grants the appointed attorney permission to pay the bill; make deposits into bank accounts, financial portfolios, and retirement accounts; file a tax return; and engage in certain transactions that are documented in the POA form.
Medical power of attorney forms allow people to state what health care procedures they would or would not want to receive in the event of a life-threatening event. Some states require people to execute a will in lieu of a medical POA, so it’s best to get legal counsel to determine the appropriate form.
Health care directives must include a consent form to release medical records to actual attorneys. Confidentiality laws prohibit medical personnel from providing personal health information to others without proper consent.
For most people, the logical choice for a lawyer is actually a family member. It is important to realize that the person chosen will have access to sensitive financial and medical information, so it is important to choose wisely. In lieu of relatives, lawyers can actually be financial planners, lawyers, or personal friends.
In most situations, it is advisable to appoint one actual attorney for a durable financial and medical power of attorney. While not mandatory, having one person in charge can be more efficient. If this is not possible, it is best to appoint two people who are able to work well together.
Establishing a POA is also an important plantation planning strategy. One of the most valuable gifts anyone can give their family is making sure their business is in order. Settling a loved one’s estate can be a complicated matter if direction is not given in the last will and will.
Writing a will helps speed up the probate process used in the US to settle a deceased person’s estate. A will is necessary to ensure that a loved one receives the estate you desire. They are also used to establish guardianship for minors and appoint personal representatives to manage inheritance matters.
Both a will and a durable power of attorney give authority to those charged with certain tasks and help make their work easier. For a nominal fee and a few hours’ time, these documents provide peace of mind knowing that everything is in order if the unthinkable happens.