Managing your finances can be challenging at any time, especially when economic conditions are shaky. Imagine how difficult this task would be if you suffered physical or mental impairment. In these situations, you may not be in a good position to make sound decisions. Luckily, there are steps you can take ahead of time to ensure that you and your family have financial security. You can do this through durable power of attorney.
In estate planning, the durable power of attorney is a critical component. This element allows you to appoint someone to act as your agent to carry out your financial matters and wishes. Most people choose a family member to do this, though you could also select a friend, business associate or trusted professional colleague.
Examples of When Durable Power of Attorney Comes Into Play
If a person is incapacitated, it may be difficult, if not impossible, to make the best decisions about critical financial matters. This may include everyday issues such as paying bills, handling debt, or making mortgage payments. Durable power of attorney also permits your agent to take care of real estate transactions, apply for a loan or withdraw from bank accounts.
Issues That Require the Use of This Authority
Durable power of attorney often takes effect when an individual reaches an advanced age and has diminished mental capacities. Traumatic brain injuries from an accident could render a person unable to handle finances or other daily tasks. A debilitating disease could also warrant such a measure.
What Happens Without One
It can be complicated if you are unable to deal with your finances but haven’t enacted durable power of attorney. In this case, if financial challenges lead you to legal issues, you won’t be able to select someone to represent you in court. Instead, you will have a court-appointed guardian.
How To Get Started
Setting up a durable power of attorney may seem unnecessary right now. If you are healthy and are of a sound mind, you should still strongly consider this action. Speak to a lawyer today about this process and what you need to do. An experienced estate lawyer, like from the Yee Law Group, will make sure your wishes are carried out and that you have financial stability even if you can’t be in charge of these issues yourself.
If you haven’t chosen someone to act as your financial agent, do it today. Durable power of attorney can spare you and your family a lot of grief later on.