If you are involved in planning your estate, you need to be prepared for different issues that could arise. One of these issues is incapacity or partial incapacity. Your estate plan can address what happens in the event you are in this situation.
One mechanism to address issues involving incapacity is known as a Power of Attorney or “POA.” A POA creates an agent-principal relationship, where an agent is appointed to handle issues on behalf of a principal when the principal can no longer handle or manage those issues (usually because of health issues).
A principal can delegate many kinds of powers to an authorized agent. In return, the agent is fully accountable to the principal, and in fact, the principal can fire or remove an agent if the principal is dissatisfied with the agent.
Here is a list of some of the powers that can be granted to an agent under a Power of Attorney:
• Creation of trust;
• Claim of n elective share;
• Disclaimer of an interest in property;
• Renunciation of Fiduciary Positions;
• Power to withdraw and receive;
• Admission and authorization of medical procedures;
• Real estate transactions;
• Tangible personal property transactions;
• Security transactions;
• Commodity and options transactions;
• Banking and financial transactions;
• Power to borrow;
• Insurance transactions.
If you have questions about the POA process, consult with a qualified attorney today.