As you may know from reading the previous blog in this series, a power of attorney is a written document that may serve many useful estate planning purposes, depending on your personal or business needs. Your agent or attorney-in-fact has as much power as you delegate or assign. If you want your agent to have specific and limited powers, your attorney can help you draft an agreement specifically delineating those powers.
Some types of powers you may give your agent include the power to make financial decisions and enter into financial transactions with your bank or lender. Your agent may also have the ability to invest on your behalf, the ability to manage your daily financial affairs for your business, or for your personal household needs.
You may consider giving your agent the power to conduct real estate transactions, including the power to sell or purchase real estate on your behalf, the power to pay your property or income taxes and the power to manage your retirement assets. If you are a small business owner, allowing someone else to make business decisions on your behalf or to conduct your professional affairs may make practical sense. You can delegate some of your financial responsibilities or give your agent the power to continue conducting your business affairs if you become ill or mentally incapacitated.
- How Can I Keep the Details of My Estate Plan Private? - July 2, 2020
- Do I Need a Domestic Asset Protection Trust? - June 25, 2020
- Do I Need a QTIP or a QDOT? - June 23, 2020
