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

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

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

Finance Blogs