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

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

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

Finance Blogs