Power of Attorney

 Power of Attorney is a legal document, and if prepared correctly according to the law, allows a person that you trust to protect your assets by doing things like:

• make sure you receive the income that is owed to you;
• write checks and pay your bills; and
• protect what you own like real estate, insurance, bank accounts, investment accounts, retirement accounts and any other valuable assets.

You sign the power of attorney giving the authority to the person that you trust.  The person that you trust also signs the document stating that whatever actions taken are done either at your request or in your best interest if, for whatever reason, you are not able to do what needs to be done.

Generally, there are three types of powers of attorneys:

a.  General Power of Attorney—once you and the person you trust sign the document, the person that you trust can act on your behalf either at your request or in your best interest if, for whatever reason, you are not able to do what needs to be done to protect your income and assets.

b.  Springing Power of Attorney—this type of power of attorney is not able to be used until two doctors certify that you are no longer able to make decisions for yourself, and at that time, the person you trust can act on your behalf and do what needs to be done to protect your income and assets.

c.  Limited Power of Attorney—you can create a power of attorney for specific task that only lasts for the duration of that task.   For example, you bought a house and cannot be at the closing which requires your signature on multiple documents.  The person that trust uses the limited power of attorney to complete the sale and power of attorney ends once it’s over.

d.  Who Should Get a Copy of Your Power of Attorney?  Once you prepare the power of attorney according to the law, a photocopy is as good as the original.  Therefore, you’ll keep the original and give a photocopy to the following:

(1)        Person you trusted to act on your behalf, agent;

(2)        Your attorney;

(3)        Bank;

(4)        Investment Advisor;

(5)        Insurance Broker;

(6)        Income Tax Preparer; and

(7)        Any other organization where you want the person you trust to do things on your behalf.

e.  Don’t Worry, You Can Change a Power of Attorney During Your Lifetime.  Remember, if circumstances and relationships change, you can always take the power of attorney away. Just do it in writing stating that you no longer want that person to act on your behalf.  Then provide that writing to all your institutions like your bank, investment advisor, and others to let them know about the change.

f.  Power of Attorney Safety Net for Revocable Living Trust.  If you have a revocable living trust, then you don’t need a power of attorney to handle the assets that have been titled in the name of the trust like bank accounts, investment accounts, real estate, and any other valuable assets.  The trustees of the trust handle that, and if one trustee is not available than the other trustee can handle it.

However, much like how a Will acts as a safety net for a trust, the power of attorney does that too. There can be a number circumstances where a person’s signature is needed and the assets or obligations are not in the name of the trust.  If that’s the case, and that person is not available, the person on the power of attorney can sign and make sure what needs to be done gets done.

g.  Not Having a Power of Attorney May Waste Your Life Savings & Destroy Family Relationships.  So why would you want a power of attorney?  There could be a lot of reasons.  But here’s the most important one. What if you become temporarily or permanently incapacitated and you are not able to collect money that is owed to you, pay your bills, and protect what you own like real estate, bank accounts, investment accounts, retirement accounts, and any other valuable assets. If you didn’t take the time to prepare a power of attorney, then someone on your behalf may have to petition a court for guardianship and appoint someone to make those decisions for you. Petitioning a court for guardianship is a very expensive process compared to preparing a power of attorney. Moreover, the court may choose a person you would not have chosen to make these important decisions.  That fact may cause conflict within the family, fighting over what they thought you would have wanted done because you did not make your wishes known when you were able to do that, which may destroy family relationships.

Want Peace of Mind and a Complete Evaluation of Your Case? 

Call (610) 365-4986 NOW or Click HERE to Schedule a Consultation with Chester County Pennsylvania Estate Planning Attorney, Michaelangelo L. Dippolito.  Click HERE to see the attorney’s background. 

Not Ready to Speak to an Attorney Yet?  No Problem.

Get this FREE Book and Consumer Protection Guide, Will, Power of Attorney, Living Will & Trusts in Pennsylvania, A Consumer Protection Guide on What You Need to Know to Protect Your Legal Rights.  Here’s Some of What’s in the FREE Book and Consumer Protection Guide: 

• Optimal Estate Plan to Protect Your Life Savings and Family Relationships
• Why Your Retirement Plan Should be in a Trust
• An Estate Plan for 2^nd Marriages & Blended Families
• 44 Reasons Why You May Need to Update Your Estate Plan
• Annual Review of Your Estate Plan to Make Sure it Works
• Arming Yourself with Knowledge is the First Step to a New Beginning

Still Not Ready and Want to Learn More Before You Move Forward?  No problem.

Click HERE for more information on Will, Power of Attorney, Living Will, & Trusts in Pennsylvania, and remember, we’re just a phone call away at (610) 365-4986.