What is a Power of Attorney?

One of the most important estate planning tools you can create for yourself is a Durable Power of Attorney (“POA”). In a POA, an individual is designated to act as your attorney in fact. Your attorney in fact has the authority to handle your affairs in the event you are unable to do so. Without a POA, were you to become incapacitated or deemed incompetent, your family would have to go through a somewhat lengthy and costly guardianship proceeding to have a guardian appointed to handle your affairs. There is of course one concern we deal with often when discussing POAs.

Many individuals are concerned that once they have executed a POA, that their attorney in fact will take advantage of them. While it is true that a POA is effective immediately upon execution, your attorney in fact is legally obligated to act in your best interest. If your attorney in fact is taking advantage of you, they are clearly not acting in your best interest, and you would have a valid and strong legal claim against your attorney in fact to recover the damages you sustained due to your attorney in fact’s breach of fiduciary duty. 

With that concern put to ease, there are several critical things your estate planning attorney in fact can do for you in the event your POA needs to be utilized. For example, your attorney in fact can manage your bank accounts, pay your bills, buy and sell real estate on your behalf, and handle your stocks, retirement accounts, etc. You wouldn’t want your bills to go unpaid, or your retirement funds to be inaccessible in the event you were experiencing incapacitation or incompetency would you?  

Give us a call today to schedule your free estate planning consultation today. It is never too early to plan your future!