Free Personal Finance & Budgetting Articles

Professional Authors - Professional Articles

Personal Finance Tips - How to Set Up a Financial Power of Attorney To Help Handle Your Affairs

If you have a good deal of money or assets it is probably a good idea that when you are planning your estate that you also consider setting up a financial power of attorney. What this is, is a document that will give another person the legal power or right to handle all of your financial affairs. To do this you don't even have to go to court. You just need to be of sound mind when you set up this type of an arrangement.

You being the principal in this document will then choose someone called the agent who will handle your affairs should there come a time in which for whatever reason, you can't. They can also be asked to handle your affairs if you are going to be gone and won't be able to take care of your affairs while you are away.

When you sit down to figure this out you are going to need to decide upon just how much authority that you are going to allow the agent to have. You may decide to give them general powers to handle all of it or you may just give him power to just take care of certain kinds of transactions like your stocks and bonds. They can even be asked to take care of financial issues while you are away on an extended vacation if need be.

You also need to figure out just how long you want their authority to last. It can be durable or it can be nondurable. A nondurable agent will lose their authority the minute you should become incapacitated in any way. So if you want to have them to continue on should you not be able to take care of things if you were incapacitated then you would want to make sure that you made them a durable agent.

You also need to figure out when the power of attorney will take effect. Understand that it will go into effect immediately as soon as the document is signed unless you set down a date in the document when it will take effect. Some documents with durable agents will not kick in until you might be declared incompetent or incapacitated by a doctor. You will also need to make sure there is a stipulation in the document that dictates when the power of attorney is ended, for instance you might stipulate that once a doctor says you are going to be OK and will be recovering, then the power of the agent will end.

Once you have your document written up you will need to have it signed by all parties involved and most states will require that you have the document notarized in front of two witnesses. If you don't want to do all of this yourself, you can always pay an attorney to write up your document for you.

When you decide to write up this kind of a document, the person that you pick needs to be someone you really believe that you know and trust well enough to honestly take care of your affairs for you whenever you might not be able to. Also remember that anything is possible so you might want to also name a second agent in case something should happen to the first one. Also make sure that if you would like to pay this person for performing their agent duties to state this in your document, otherwise they don't get paid for doing this.

Once you have your document written up and signed you should give a copy of it to your agent, a copy for yourself and you should also make sure that any agencies or businesses you do business with have copies as well and that would be banks, brokers, IRS or SSI.

Note: You can revoke your power of attorney at any time during your arrangement with them as long as you are mentally stable and you make sure that you send them a letter in writing stating you are going to revoke the document.

Post has no comments.
Post a Comment

Captcha Image

enough money certain stocks employees retirement years car loan gross income health insurance common estate planning dream car dealer computer property tax reality party supplies printer reduce tax own business good credit unsecured loan owe money household tips financial crisis payroll software package balloons party theme invitations right estate planning lawyer cash flow sticker price credit score rebates mortgage payments emergency spending law firm decorations save money periodic payments poor credit specials income va loan possibility car sites top preparing dinner bad credit compare prices medicare personal finance tips time management car insurance major financial issues payment plan manager specials finance company get rid of debt self help financial power financial affairs cash legal power credit attorney half price qualified veteran trade in value grocery list home improvement loan start investing overspending payroll insurance secured loan enjoying stock market birthday party medical history major debt quiet time finances property value home equity loan financial basis reduce interest interest rate pay bills W-4 forms debt management repair credit car finance estate planning lawyer car improvement loan wills credit policies deductions salvage groceries budget car lot discounted items money issues research get help stop procrastinating actual loan money conscious homemade food tight budget managing time coupons personal bankruptcy insurance company present car estate planning voluntary secure finances avoid personal bankruptcy debt settlement debt management company quick sale gross pay financial issues meat specials net pay car payment handling problems payment range sticker shock veteran loan afford a car loan possibility stop paying getting health insurance lease takeover local dealer fast paced true market value assessor estimate estate planning errors bankruptcy power of attorney retirement fund financial agent new car smell grocery shopping personal finance car lease best credit chapter 7 different models new car dealership personal finances getting a loan income tax debts spend less banners community property saving money finance tips planning store ads finance tips family member need maternity care make a will miss payments buying a home creditors shop online structured settlement leasing company social security number test drives personal finance resources car payments retirement planning home loan lower tax

Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs