Why Do I Need a Power of Attorney?

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You might nominate both of your children as attorneys-in-fact requiring that they agree to act on your behalf under a power of attorney.

Fed Week’s article, “Giving Someone the Power of Attorney,” uses the example that you might suffer a stroke with no prior warning signals and be unable to sign your name. This could mean serious financial consequences. However, executing a power of attorney can protect you in that kind of situation.

It’s important for just about everyone to have a power of attorney. You can name more than one attorney-in-fact, stipulating if they are permitted to act alone or if they must act in concert.

Of course, the individual you designate must be someone you trust. This is typically a close (albeit younger) member of the family or a close friend.

If desired, you can assign different responsibilities to different individuals. For instance, you can name your spouse to make your housing decisions and your son to manage all your financial affairs.

You may not want to give power over your assets to a family member while you’re still in command of your faculties (or have capacity). To address this, many states recognize springing powers of attorney. These powers do not become effective until specified events take place like incompetency (certified by a doctor) or when you go into a nursing home.

Reference: Fed Week (October 3, 2019) “Giving Someone the Power of Attorney”

 

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