Durable Financial Power of Attorney

A durable financial power of attorney is a straightforward way to arrange for an individual to manage your finances.

The durable power of attorney for finances – often known as a financial power of attorney — is a straightforward, affordable, and dependable way to plan for an individual to manage your finances if you were to become incapacitated (not capable of making decisions for yourself).

A financial power of attorney is a great document to create for yourself, but also is a great benefit for your family. If you were to become not able to make decisions on your own and you haven’t created a durable power of attorney, legal proceedings is most likely to happen. The closest people tp you are going to have to petition a court for control over at least some of your finances.

When a Financial Power of Attorney Becomes Effective

Financial powers of attorney can be drawn up so they are enabled to go into effect when you sign it. (A lot of partners have active financial powers of attorney for one another should something happen to one of them — or for if one of them is away.) You should declare that you desire your power of attorney to be “durable.” When you choose not to, in a lot of states, it will automatically end should you later become incapacitated.

Or, you can state that the power of attorney will not go into effect unless a doctor declares that you have become debilitated. Referred to as a “springing” durable power of attorney. It enables you to retain control over your affairs when and should you become debilitated, when it springs into “action”. Nevertheless, springing powers of attorney can cause severe delays and difficulties for your agent.

Your Agent’s Duty

When you devise and sign your durable power of attorney, you enable another individual legal authority to make decisions for you. This individual is referred to as your agent or, in many states, your “attorney in fact”.

Usually, people allow their agent a broad power to manage all their finances. However, you are able to allow your agent as much control as you want. You might want to give your agent authority to do these or all the below:

use your assets for paying your day-to-day expenses and those for your family
purchase, sell, retain, pay taxes for, and mortgage any real estate and/or other property
collect Social Security, Medi-care, and/or other governmental benefits
invest your capital in stocks and/or bonds, and mutual funds
manage transactions with financial institutions and/or financial institutions
purchase and sell insurance policies and annuities on your behalf
file and pay-out your taxes
manage your small business
declare property you have inherited
transference of property to a trust you have already devised
hire an individual for representation in court, and
control your retirement accounts.

Your agent is required to act in your best interest, retain accurate records, retain your property individual from hers or his, and prevent conflicts of interest.

Making a Financial Power of Attorney

To create a legal durable power of attorney, all you are required to do is correctly complete and sign a form that is a couple of pages long. Many states are going to have their own forms, but it’s not required for you to use them.

Some financial institutions and brokerage companies have their own durable power of attorney documents. If you want your agent to have an easier time with these institutions, you may need to prepare two (or more) durable powers of attorney: your own form and forms provided by the institutions with which you do business.

You are required to sign the document in the presence of a notary public. In many states, witnesses are also required to watch you sign it. When your agent is going have the control to deal with your real estate, you are required to place a copy of your documentation on file at your local land records office. (In 2 states, North Carolina, and South Carolina, you are required to record your power of attorney at your land records office enabling it to be durable.)

When a Financial Power of Attorney Concludes

Your durable power of attorney systematically ends following your passing. Meaning you are unable to give your agent authority to handle things after you pass away, like paying your debts, planning funeral or burial arrangements, or the transference of your property to the individuals that are going to inherit it. When you want your agent to have the control to complete your affairs following your passing, empower a will to designate that individual as your executor.

Your durable power of attorney also concludes when:

You decide to revoke it. Considering you are mentally competent; you can revoke a durable power of attorney any time you wish.
You get divorced. In a some of states, when your spouse is your agent and you get divorced, your then ex-spouse’s authority is systematically terminated. In some other states, if you want to terminate your ex-spouse’s authority, you have to revoke your present power of attorney. Be that it may, it’s a good idea to create new documentation once you file for divorce.
A court nullifies your documentation. It’s uncommon, but a court might declare your document invalid if it comes to the conclusion that you were mentally unfit when you signed it, or that you were the victim of deception or undue coercion.
No agent is at hand. To bypass this issue, you can designate an alternate agent in your documentation.

Source:

Shae Irving, J. D. (2020, August 11). Durable financial power of attorney: How it works. www.nolo.com. Retrieved December 22, 2021, from https://www.nolo.com/legal-encyclopedia/durable-financial-power-of-attorney-29936.html

Choose the Right Attorney in Arizona

Regardless of the choice you make, it’s important you make the best choice for you when hiring an attorney. Remember: The decisions you make now can affect your future. Ultimately, choosing the best lawyer will depend on which lawyer feels best for you and your situation.

If you want to learn about Michelle N. Ogborne and see if she is the right attorney to represent you in your collaborative divorce in Arizona, contact us today!