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

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

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

Finance Blogs