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

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

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

Finance Blogs