In our last blog we talked a bit about a Power of Attorney (POA). This month, we want to focus on these documents and dive deeper into why they are important. No matter your health, it is a good idea to have a POA in place. Your agent under your POA will be able to manage your affairs should you be unable to manage your affairs yourself.
First, let’s learn about the different types of POAs.
General Power of Attorney
Your agent under a general POA has the power to act on your behalf regarding a broad array of issues, including, but not limited to, your finances, healthcare, real estate, investments, banking, retirement accounts, insurance, operating business interests and handling business transactions, settling claims and employing professional help. Having a general POA is essential whether you are going to be out of the country or you simply want to be prepared in case you are ever incapable of managing your own affairs. When you meet with your attorney to do your estate planning is the best time to have a POA prepared.
Limited Power of Attorney
A limited POA is a document you can have prepared to allow your agent to take care of a particular item for you. The common items covered by a limited power of attorney include selling property, managing real estate, or handling health care issue. The POA will specify the particular issue your agent can handle on in your behalf.
Now, how do you pick who will be your agent under your POA?
The main factor you need to think about is trust. You are entrusting this individual to act on your behalf, so you need to ensure the individual you are choosing is someone you trust without question. You can pick a family member or friend; you just need to pick someone who will respect your wishes and won’t abuse the power you are giving them.
To set up a Power of Attorney, you must have the paperwork prepared by an attorney. Here at Sher & Associates we can take care of the process for you. When you are ready to discuss your estate plan and have your Power of Attorney drafted, give us a call. Just one last thing to keep it mind, setting up your Power of Attorney requires that you are of a sound mind! If you wait until your health has deteriorated, you have probably waited too long.
Sher & Associates, P.C. is a law firm located in Kutztown that can assist you in any of the following areas: business law, real estate law, and estate planning. We assist many individuals, businesses and families in and around Fleetwood, Blandon, Topton, Hamburg and Oley.