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



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

Finance Blogs
Finance