DURABLE POWER OF ATTORNEY
DURABLE POWER OF ATTORNEY FOR FINANCIAL MANAGEMENT
Often, a person's motivation in executing a power of attorney for financial management is to provide for continuing management of assets in case of future incapacity. In such case, the principal needs a durable power of attorney (DPOA). A power of attorney is a legal document that gives someone you choose the power to act in your place.
A person can choose to have that power effective immediately and remain effective despite that person's later incapacity OR they can choose to have that power become effective when they become incapacitated.
Authority can be limited to a specific period of time, to certain specific assets covered by the power, or to certain specific actions or special conditions i.e. only for a real property transaction.
WHO SHOULD YOU CHOOSE TO BECOME THE AGENT?
A Power of Attorney can grant broad powers which can give rise to abuse. It is very important to choose someone you can completely trust. Generally, a spouse is chosen or a close relative. Even when you have a Durable Power of Attorney effective immediately, Now as long as you can still manage your own affairs as long as you still have capacity.
WHO DETERMINES IF I AM INCAPACITATED?
The Durable Power of Attorney should describe how incapacity will be ascertained and by whom, whether it is the principal’s physician(s), spouse, or a panel of individuals. It also should contain a provision which provides guidance for the chance of the principal regaining capacity and describe the meaning and determination of restoration.
If you choose the physician option, make sure your agent can receive your medical information and records by signing HIPAA and medical authorization forms.
IS THERE ONE FORM THAT CAN DO IT ALL?
Short answer...Well Yes and No. Every situation is unique, so it is important to fully consider your wants and wishes with the practicality of life. There are three types of commonly used Durable Power of Attorneys:
The California statutory form, Preprinted form DPOAs and Attorney-drafted forms
The biggest problem people encountered with the Uniform Statutory DPOA form or preprinted form is getting third parties to rely on them. This is because there is often very little discussion of the form before execution. While these forms are relatively easy to execute, that has the unfortunate effect of making them the document of choice for scam artists to take over a person’s finances. Moreover, these forms often do not include language that is required (or thought to be required) by some third parties. This has caused many institutions to reject the document as invalid or to create numerous barriers to the document’s acceptance.
KEEP IT UP TO DATE
Review and possible execution of a new Durable Power of Attorney should be considered when certain events occur, such as the principal’s marriage, separation, or divorce; a death in the family; changes in health; relocation of family members; or the simple passage of time. At the time the power is drafted, the attorney should discuss with the client the desirability of periodic review and the kinds of circumstances giving rise to the need for immediate review.
Get a fresh start and call Menifee Bankruptcy Attorney Kris Crawford today (877) 560-9578