The Management Of Your Assets Through A Power Of Attorney
As we age, we may become unable to manage our financial affairs. A power of attorney is an agreement under which you, as the “principal,” provide a certain amount of authority to another person, referred to as the “agent” to manage your financial affairs. This authority could include the handling of your investments, finances and personal matters. You can authorize your agent to make gifts and other estate planning decisions. The powers and duties of the agent are defined by the power of attorney document and the Florida Power of Attorney Act. The power of attorney may be written as broadly or narrowly as you see fit. You may also direct your agent to manage your health care and make your health care decisions. Because a power of attorney becomes effective immediately upon its execution and may include broad powers, you must choose your agent with care and should be someone you trust.
The Various Types Of Powers Of Attorney
There are a number of different options when setting up a power of attorney, and the right one for you may depend on your situation, assets and potential heirs. Regardless, it remains a critical part of establishing estate plans. For most estate plans, a durable power of attorney is utilized because it remains effective even if you are incapacitated. A power of attorney is normally executed together with advance health care directives. A power of attorney can be utilized for different purposes, including the following:
- Limited power of attorney: This agreement gives the agent power to undertake specific and limited actions on your behalf, such as selling a house or vehicle.
- General power of attorney: This is a much broader agreement that allows the agent to perform a variety of legal acts on your behalf. The agent’s exact powers and responsibilities must be carefully outlined in the document.
- Durable power of attorney: Unlike most legal agreements, a durable power of attorney remains effective even if the principal who created it becomes incapacitated. The agreement must still clearly define the agent’s powers and responsibilities.
What Is The Process Of Setting Up A Power Of Attorney?
A power of attorney agreement is a complex and powerful legal tool that should be created by a knowledgeable lawyer. The agreement must be signed by the principal and two subscribing witnesses, and it needs to be notarized to be valid.
Make An Appointment With A Knowledgeable Estate Planning Attorney Today To Establish Your Power Of Attorney Today
At Lyons, Beaudry & Harrison, our board-certified attorney with his expertise in wills, trusts and estates will work with you to draft a power of attorney that integrates seamlessly with your estate plan and advance health care directives, based on your unique needs and wishes.