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

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

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

Finance Blogs