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

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

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

Finance Blogs