WHAT'S A DURABLE POWER OF ATTORNEY?
Posted: December 11, 2017
A durable power of attorney (POA) provides your elderly loved one with an option to have a trusted friend or relative handle important financial and health-related matters. Specifically, your parent, called the “principal,” may appoint a relative or friend, called an “agent,” to manage healthcare, financial, and legal matters.
There are 2 types of POAs:
- Healthcare POAs
- Financial POAs
Healthcare POAs allow the agent to make decisions regarding medical procedures and treatments for the principal. On the other hand, financial POAs give the agent the power to handle legal and financial aspects. These include managing assets, dealing with the IRS, handling taxes and debts, and making other important financial decisions.
UNDERSTANDING THE BENEFITS OF POAS
If you don’t have a POA in place, and you become mentally incapacitated or otherwise unable to make medical or financial decisions, your family will be powerless to help. A relative will have to go to court and be named your official guardian. This is a complicated process, so it is helpful to have a POA in place before you reach this point.
POAs can be enacted immediately, or they can be designed to go into effect once you become unable to make your own decisions. In order to make a POA valid, you must be in good mental condition and of sound mind. It is important to note that the POA may be altered or revoked at any time, given you are still of sound mind. The person you appoint will be able to make decisions regarding your health and finances, so it is necessary to choose someone you trust and who has a thorough understanding of relevant matters.
CALL OUR SPRINGFIELD ESTATE PLANNING LAWYERS TODAY AT (417) 658-4172
At Worsham Law Firm, we provide informative legal assistance to clients in the estate planning process. If you want to draft a durable power of attorney, or you want to better understand your estate planning options, our Springfield estate planning attorneyscan answer your questions every step of the way. With more than 20 years of legal experience, our firm can provide the guidance you need.
Contact us today to request an initial consultation.
Categories: Estate Planning