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.



Comments
Post has no comments.
Post a Comment




Captcha Image






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



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

Finance Blogs
Finance