• 12
  • May
    2011

A power of attorney is an estate planning tool that you can use to ensure that you and your affairs will be taken care of by someone you trust, in the event that you are unable to take care of them, or yourself, in the future.

Everyone who lives long enough is eventually going to lose some of their mental clarity. This decline can also happen to younger people unexpectedly. In any case, it is wise to have some plans in place so that your health and your finances can be attended to without your direct involvement. That is what a power of attorney typically is set up to do.

The person to whom you grant power of attorney is also known as your "agent" or your "attorney in fact." This agent has the authority to sign your name and has a duty to be your "fiduciary." The fiduciary duty means that they must always act in your best financial interests, and must comply with your instructions.

There are different types of power of attorney, and a Florida estate planning lawyer can assist you with determining the best type for your needs.

We will discuss two primary types of power of attorney. First is a "springing power of attorney," which only goes into effect when something happens that you specify. Typically the event would be that you have become incapacitated and are no longer able handle your own affairs.

In most cases, the agent will have to provide some proof of your incapacity before the power of attorney becomes effective.

The second type is a "durable power of attorney," which goes into effect immediately. In this case your agent does not need to prove that you have become incapacitated.

You should choose your agent carefully. Be sure it is someone you can trust, who will be competent in the tasks given to them, and who is willing to take on the burden of handling your financial or medical affairs. You will probably need to pay the agent if you choose a professional organization or someone outside of your own family.

Source: CNN Money "Why should I assign power of attorney?"