Are you in the process of creating an estate plan for the first time? Are you updating your estate plan to better suit your needs? If you find yourself in either position, it's important to learn more about a durable financial power of attorney.
With this, you give permission to someone else to manage your finances if you become incapacitated. Known as a financial agent, this person could be responsible for a variety of tasks. You, however, have the right to set limits on what your agent is permitted to do.
Some of the tasks you can ask your agent to perform include:
-- Paying your bills and taxes.
-- Paying medical expenses.
-- Managing your real estate, including your primary and secondary homes.
-- Investing on your behalf.
-- Collecting retirement benefits.
-- Buying insurance for you.
-- Making decisions associated with your business.
As you can see, these are important tasks. For this reason, you need to take your time when naming a durable financial power of attorney agent. You must name a person who is trustworthy and responsible, as he or she may have to make critical decisions on your behalf.
You are not required by law to create a durable financial power of attorney, but this is something that can give you peace of mind. It may never come into play, but it's good to know that somebody can step in and manage your finances should you be unable to do so on your own.
A durable financial power of attorney is an important legal document, so don't hesitate to learn more about the benefits and make decisions that could work in your favor.
Source: FindLaw, "Durable Financial Power of Attorney," accessed Feb. 07, 2017