Do you think that because your elder loved one has a power of attorney they are protected? What many people do not realize is that a normal power of attorney ends when the person who makes them loses mental capacity. In cases like Alzheimer’s and dementia, this leaves person vulnerable.
A durable power of attorney for finances is an all-inclusive power of attorney that gives the person acting as your agent or attorney-in-fact the ability to manage all of your financial affairs if you become incapacitated.
The person who is your agent does not have to be a financial expert, and certainly doesn’t have to be an attorney. The durable power of attorney over finances allows this person, who should be someone you trust completely, the ability to do everything from sign for your mail to manage your investments.
While making a durable power of attorney of finances official only requires your signature plus two signatures of people unrelated to you, not all of the documents you can buy online or in an estate planning kit are created equal. For example, you will want to make certain that your agent has the ability to gift your assets to children or other heirs.
Failing to properly document a durable power of attorney can have stressful results for your loved ones should you become incapacitated. They would have to go to court to acquire the legal ability to manage your affairs. If you do not have a durable power of attorney in place, consult with an experienced elder law or estate planning attorney soon.
