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Here’s more information about durable powers of attorney for finances.
Your state may have its own ready-to-use power of attorney for finances forms. Or you can have a lawyer draft a durable power of attorney for you. Or you can create your own using software and information from a reputable legal publisher.
If you already have a power of attorney for finances, be sure to make a new one every few years since financial institutions may not honor an old one.
In addition to creating a general power of attorney for finances, ask the financial institutions you do business with if they have their own power of attorney forms. If you use their documents it may make things easier for your attorney-in-fact.
To ensure that your durable power of attorney stays valid even if you become incapacitated you have to specify that you want it to be durable. Otherwise it will automatically end if you become incapacitated.
You can make a durable power of attorney effective immediately, or you can create a springing durable power of attorney that doesn’t take effect unless and until you become incapacitated and a doctor declares that you can no longer manage your finances.
Getting a doctor’s statement may be time consuming and complicated, however, and some institutions may be reluctant to accept a springing power of attorney, questioning whether you have in fact become incapacitated.
That’s why making your power of attorney effective immediately is preferable. And that’s also why it’s important to only name someone you trust as your attorney-in-fact. You should be confident that your attorney-in-fact won’t take any action under your power of attorney until you direct, or until you’re incapacitated in the attorney-in-fact’s opinion.
As long as you’re mentally competent you can revoke your durable power of attorney at any time, whether or not it has taken effect. Otherwise, a durable power of attorney ends when you die.
That’s why you can’t give your attorney-in-fact authority to handle things after your death. Administering your estate after your death is the responsibility of the executor you name in your will.
If you move to another state you should revoke your old durable power of attorney and create a new one. Although the old document may be acceptable under the new state’s laws, creating a new one ensures that it complies with all the regulations of the new state.
A durable power of attorney for finances doesn’t give your attorney-in-fact legal authority to make medical decisions for you if you become incapacitated.
To appoint someone for this responsibility and to document your wishes regarding certain types of medical treatment and life sustaining procedures, you need to create a durable power of attorney for healthcare and a living will. Ask you doctor, local hospital, or attorney for the healthcare documents that are valid in your state.
Article is for educational purposes only and is not intended to provide specific tax or legal advice. For answers to tax questions, please see your tax professional. For legal questions, consult an attorney.
Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (800) 369-2862. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America. The Representative may also be a credit union employee that accepts deposits on behalf of the financial institution.
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