A power of attorney is a tool for a person to use to help oversee their health or assets as they age or face health issues. The person, or principal, who enlists a power of attorney can revoke it at any time, and the different power of attorney designations can expire at different times. When choosing a power of attorney to act as your agent, the assumption is that they will be trustworthy and carry out your wishes to the best of their ability. This is not always the case, however, and sometimes things do not work out the way they should. What happens then? Can a power of attorney be challenged?
After a loved one dies, there are a number of things to take care of. From funeral services, to figuring out their estate, it is a lot, and all at a very sad time for the family. Often times, the last thing people are worried about are taxes, and they can be confusing. Who pays the inheritance tax? Who pays the estate tax? It can be a lot to take on. Read on, as we will examine the differences in inheritance and estate taxes.
If you are running a small business, you have likely put your heart and soul into it and done everything in your power to make the business successful. But what happens when you step away from the business, or if you were to pass away? Would it continue to hum along, doing business just as you intended? That all depends on how you have planned for the business after your passing. And if your legacy is important to you, estate planning for your small business will be vitally important.
A power of attorney is a legal document giving someone authority over financial assets, healthcare, or both. There are essentially four types of power of attorney. It is an important document that appoints an “agent” or “attorney-in-fact.” The grantor retains the right to make decisions on their own. The power of attorney can often be limited in scope to making either financial or health care decisions on the individual’s behalf. As such, it is important to choose the right type of power of attorney that is right for you. Here are the four types of power of attorney:
Planning for our estates and end-of-life care becomes increasingly important, despite how unpleasant it may seem. Part of this planning may include the possibility of being incapacitated and requiring someone else to make important decisions regarding your health or assets. One way to handle this is through appointing a durable power of attorney. A power of attorney can be very beneficial as it is a legal document with the ability to allocate decision-making authority or power to another individual. The person granted power is then enabled to perform actions like paying bills, executing documents, managing property, or making medical decisions depending on the scope of authority given.
As we age, we will have to make decisions on various things, like our finances and healthcare. Sometimes, those decisions need to be made while we are incapacitated. That is why designating a power of attorney for your financial and medical needs may make sense.
A generation-skipping trust, or GST, allows a grantor to transfer assets to a benefactor, while skipping a generation of the family. It is usually used in cases where a grandparent wants to leave assets to a grandchild. It is a trust that can be used in situations where the grantor has significant wealth and assets and may be a way to preserve that wealth for the grantor’s descendants.
Executing a power of attorney is a powerful thing to do, legally. By doing it, you are essentially giving someone the power to make decisions, both medically and financially, for you. It is also a useful tool, especially in certain cases. Here are five things to consider before executing a power of attorney.
What is a Power of Attorney
First, it is important to know what a power of attorney is. A power of attorney can be very beneficial as it is a legal action with the ability to allocate decision making authority to someone else. The person granted power can perform actions such as paying bills, executing documents, making medical decisions, or managing property, depending on the scope of authority given.
Being chosen as the personal representative of a person’s will is both an honor and a responsibility. Along with it come certain duties. Before you accept those responsibilities and obligations, you should know exactly what you are taking on. Broadly speaking, you will be distributing the deceased person’s property and arranging for payment of estate debts and expenses. Duties specific to this role include filing the will for probate, setting up an account for paying bills and taxes, maintaining the willed property, making and filing an inventory with the court, distributing assets, and more. It is no small task to take on being a personal representative.
Planning ahead for medical issues or financial well-being makes sense as we age. There are a number of options available in order to do this. Some of the more common approaches involve granting a trusted person power of attorney duties in order to help maintain your assets, financial well-being, and medical care. There are several designations for power of attorney duties, and the designations are important. Essentially, they outline what the duties are and how they should be carried out. There is general power of attorney designations, durable power of attorneys, springing power of attorney designations, and medical power of attorney. We will examine the last designation, the medical power of attorney, commonly referred to as the health care proxy or health care surrogate.