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.
For most of our lives, our parents or guardians are there for us. As they age, however, we may need to be there for them. It is a big responsibility and a serious one. If you find yourself in this position, you will be responsible for their physical, mental, and financial well-being. It is a lot to take on.
Trusts are an essential tool in estate planning. They are also a great way to ensure that needs and wishes are met while still protecting assets from probate. There are several types of trusts, as well as several reasons why someone would use one to protect their assets and ensure they go to the right entities. From irrevocable trusts to living trusts, they all serve a specific purpose, depending on your needs. In order for a trust to work properly, a successor trustee must be named, who will administer the trust. Upon death of the grantor, the successor trustee will take over the assets and distribute them in the way the grantor laid out. This should be someone the grantor trusts to see their wishes through, as they have written them. Choosing a trustee that the grantor believes will follow through on their wishes and instructions set forth in the trust is important. Choosing the wrong trustee can be bad for the trust.
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.
As we age, planning for our assets, our health, and our end-of-life care becomes increasingly important. Part of this preparation may include planning for incapacity and requiring someone else to make important decisions regarding our health or assets. One way to handle this is through appointing a power of attorney. This designation can be beneficial as it is legal action with the ability to allocate decision-making authority to another individual. The person granted this power can pay bills, execute documents, make medical decisions, or manage property, depending on the scope of authority given. There are several types of power of attorney designations, including a general power of attorney and a durable power of attorney. There are important differences between the two that should be considered when deciding on what type is right for your situation.