You can designate a trusted financial agent by executing an economic power of attorney. This document can be made to represent you, but it must be witnessed or notarized. Some states require that it be filed in a land record office. Banks also have their forms. Knowing your financial agent before you complete the document can make the process easier. A durable power of attorney is important because it has significant consequences. Whether you choose a limited or general power of attorney, you must ensure your document is as detailed and comprehensive as possible.
A durable power of attorney
Durable POAs are necessary for someone to care for their affairs when they cannot do so for themselves. The person appointing the agent must be trustworthy, able to make decisions, and available for meetings. The durable power of attorney form should be signed in the presence of a notary public and witnessed by other adults, if necessary. If the principal is incapacitated, it is essential to review the terms and conditions of a power of attorney and re-sign it whenever necessary.
A Durable Financial Power of Attorney can also handle banking activities like writing and depositing checks. It can even care for opening the mail, completing taxes, and managing retirement accounts and investments. Your agent can hire other professionals to help them with these tasks if needed, and you can also choose to pay for their services using assets in your name. When executing the document, it is important to remember to include the date of your last visit and any changes that occurred.
General power of attorney
A general power of attorney can be used to complete transactions even if the principal cannot sign the documents. This power of attorney is also ideal for overseas residents or acquaintances. Unlike conventional power of attorney documents, a general power of attorney will expire automatically if the principal becomes incapacitated. Choosing the right power of attorney is important based on your circumstances. To create a general power of attorney, you should use a lawyer.
A general power of attorney allows you to name a single agent or a group of agents. You do not have to appoint a lawyer to draft this document, but seeking legal counsel is recommended before signing it. When choosing your agent, remember that it is important to choose someone you trust. Once you’ve chosen a trustworthy person to act on your behalf, your agent will be authorized to act on your behalf, including making financial and property decisions.
Limited power of attorney
When you grant a limited financial power of attorney to your agent, they are given certain powers and normally have a specific end date. Generally, you would only want a limited POA for signing important paperwork or withdrawing cash from the bank. You might also want a limited POA for medical decisions since this gives your agent authority to make important medical decisions. You should consider who you wish to appoint to handle your medical matters.