When creating an estate plan, you should leave no stone unturned. And for this reason, it makes good sense to learn more about the benefits of a durable financial power of attorney.
You don’t have to add this to your estate plan, but doing so will protect your finances while giving you and your family peace of mind.
Before you get into the finer details of your durable financial power of attorney, answer this question: who will you name as your agent?
This is the person who will step into your shoes to manage your finances if you’re incapacitated and unable to do so. Since they could be faced with a variety of high-level responsibilities, choose a person who is trustworthy, honest, and able to work well under pressure.
Once you know who you want to name as your agent, turn your attention to the type of power you want to give them. Some of the tasks you may ask them to perform include:
- Managing your real estate assets
- Managing your retirement assets
- Accessing your bank accounts, such as to transfer money as necessary
- Paying your bills and taxes
- Investing on your behalf
- Collecting retirement funds and/or paychecks
- Buying insurance on your behalf
- Hiring professionals to represent you
Remember this: your agent doesn’t have the power to do whatever they want, but must closely abide by the terms and conditions of the durable financial power of attorney. Also, every decision should be made in your best interests.
As time goes by, don’t forget to review your durable financial power of attorney for potential changes. For example, if you no longer speak to the person you named as your agent, you’ll want to officially and legally change this.
Should you need any help creating a durable financial power of attorney, contact us for guidance.