If you’ve heard about having a power of attorney in Missouri, but you’re not sure what it is and if you need one, Bolinger Law Firm in St. Louis is here to explain why you should have one and answer your estate planning and power of attorney questions.
All estate plans should contain power of attorney documents because they provide you with substantial protection during your life. Durable Financial Powers of Attorney and Durable Health Care Powers of Attorney are utilized most frequently in different variations.
A durable financial power of attorney, also referred to as a “springing” financial power of attorney, creates a principal-agent relationship where you − the principal − delegate powers to your designated attorney-in-fact concerning financial matters during your incapacity.
The attorney-in-fact acts on your behalf and legally binds you to matters within the power of attorney document. Powers typically include transactions such as real estate, business, securities, banking, taxes, and governmental interactions.
Additionally, a durable financial power of attorney only provides the nominated attorney-in-fact with the exact powers listed and only during your incapacity. The attorney-in-fact has no authorization nor any financial powers while you are competent.
A durable financial power of attorney can provide peace of mind knowing that your important day-to-day financial affairs will be maintained if you should become incapacitated. Granting power of attorney is a big responsibility. A Bolinger Law Firm attorney will help you create a durable financial power of attorney as we develop your estate plan.
A durable health care power of attorney, like the durable financial power of attorney, creates a principal-agent relationship where the principal – you − delegate powers to your chosen attorney-in-fact pertaining to your health care matters.
The attorney-in-fact acts on your behalf and legally binds you to the matters within the power of attorney document. These usually include making crucial health care decisions like medical treatment, care, and end of life wishes. The durable health care power of attorney only provides the agent with the delegated powers during your incapacity and never while you are competent.
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Whereas a majority of estate planning deals with the disposition and transfer of property upon your death, a durable power of attorney provides direct benefits during your life. Durable powers of attorney provide you with comfort knowing that your financial and health care affairs will be tended to if you should ever become incapacitated. Additionally, durable powers of attorney allow for streamlined decision-making, so your affairs can be conducted without the need for judicial intervention.
If you do not have a durable power of attorney executed and you become incapacitated, then your family members or other loved ones will have to ask the court to name someone as your guardian or conservator through a court proceeding, which can be detrimental to your health and your finances.
Through the guardianship and conservatorship proceedings, a judge will name someone to take care of your financial and health care affairs. Since you do not have a say in the proceedings, it is important for you to execute a durable power of attorney prior to incapacity so that you are able to nominate the individual whom you would trust to handle your financial and health care affairs.
Not only can a guardianship and conservatorship proceeding be costly, time-consuming, and possibly put the wrong person in charge of your well-being, it also becomes a matter of public record.
When deciding whom you want to nominate as your attorney-in-fact, there are multiple considerations to account for. You will want to analyze the potential attorney-in-fact’s trustworthiness, organizational aptitude, geographical distance, ability to understand your financial and health care affairs, and their ability to conduct your affairs according to your wishes.
Furthermore, it is important to speak with your potential attorney-in-fact prior to the execution of the documents to ensure that your potential attorney-in-fact is willing to accept the responsibilities.
You can also name multiple attorneys-in-fact to act together. However, before deciding on utilizing multiple attorneys-in-fact, you need to consider how they interact with each other and whether it is truly in your best interests. Some potential problems can arise when multiple attorneys-in-fact act together, such decentralized decision-making and disputes regarding the handling of your affairs. This can lead to a delay when decisions need to be made quickly. Therefore, it is important to understand the dynamics of those you choose and determine if choosing a group would truly serve your best interests.
If you have a transaction where you want another person to act on your behalf while you are competent, say for a real estate transaction if you are out of the country, a power of attorney (without the “durability” provision) will accomplish this goal. A power of attorney document grants another person the legal power to engage in transactions while you are still competent. The attorney-in-fact’s authority is limited to a single transaction or may provide the attorney-in-fact with authority to engage in a series of transactions.
At Bolinger Law Firm in St. Louis, an estate planning attorney will work closely with you to develop the Powers of Attorney documents that fit your needs, as well as the other accompanying documents, such as a will, living will, and trust, that help complete an estate plan.
We are also available to help you review and update existing powers of attorney and estate plans, as well as draw up transactional powers of attorney for a one-time transaction or a series of transactions.
With our caring, experienced attorneys, you’ll find estate planning less stressful and walk away with peace of mind knowing you have a solid plan and someone you trust in charge of your finances and health care, should the need arise.