As discussed in the previous post, a power of attorney is a great tool that lets you plan for possible of incapacity in the future, but this document can also be used now in your day to day life if you’d like.
Decide if you want your agent’s powers to start now, or later
Just as important as what your agent can do is when they can do it. A power of attorney can give your agent power right away, or hold off until a future event or condition happens. We’ll explain the benefits and drawbacks with either option. Your decision will depend on who you will name as your agent and your personal circumstances.
For example, take a look at the following scenarios:
● Illness, Medical Conditions, or Accidents
You can have your power of attorney go into effect only if you lose the physical or mental capacity to make financial decisions, such as after an illness or accident.
You may want to include a requirement that a doctor first determine the incapacity before your power of attorney can be used. On the other hand, this delay can work against you in an emergency when a decision needs to be made immediately. We’ll explain your options and take all of this into account when preparing your power of attorney.
● Temporary Absence
If you go on vacation without your kids, you may want to set up a special power of attorney for the time you’ll be away. Even if you don’t have kids, if you’ll be gone for a long time you may need someone to manage your finances while you’re out of the country.
● Spouses and Domestic Partners
Many spouses and domestic partners decide to make their powers of attorney effective immediately. If you’re married or in a registered domestic partnership, you probably own most of your property together. Even so, some transactions require authorization from both of you. Also, some of your money and property may be in your name only, so you need the power of attorney to give your spouse access those assets if there’s an emergency.
Make sure your power of attorney is done right
With years of experience behind us, your lawyer at San Diego Law Firm will create a power of attorney that follows California law and avoids the pitfalls of generic or poorly written powers of attorney. That way, you can be much more confident that your power of attorney will be accepted by banks, investment firms, and others.
An alternative to “Conservatorships”
Remember that if you lose capacity in the future, by creating a power of attorney you can decide who you would like to manage your finances. This means that in many situations, a good power of attorney can help you avoid the need for a “conservatorship” down the road. A conservatorship would require that a loved one go to court so that a judge can appoint someone to manage your finances and healthcare.
A properly written power of attorney – along with a similar document for your medical decisions (called an “advance health care directive“) – can help minimize family conflict. While conservatorships can be necessary for some, many times a power of attorney is appropriate and can avoid the expense and time involved with creating a conservatorship in court.
Also keep in mind that a living trust and a guardianship can do more than you think, because both can help you plan for possible incapacity. Don’t miss your opportunity to plan for the future. Reach San Diego Law Firm experienced estate planning lawyers at (619) 794-0243.
