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

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

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

Finance Blogs