The Importance of a Power of Attorney
March 22, 2023 | Sage Capone
One of the most important keys in setting up a Trust is selecting a Power of Attorney (POA). This person will become the agent who will make decisions on your behalf should you become incapacitated and are no longer able to carry out commitments. In choosing this person, you should think wisely of someone who is unbiased, of sound mind, loyal and trustworthy. He or she will basically represent you and will need to carry out your crucial financial and health decisions.
There are several types of Power of Attorneys such as General POA, Financial POA, Special POA, Durable POA, Durable POA and Springing POA. Generally, all act as a representative in making decisions on your behalf and your future goals determined in your Estate Plan.
Now you might ask yourself when is the right time to elect a Power of Attorney? The answer is as soon as you are a legal adult. Of course, it depends on your mindset, future goals, and financial commitments. Most times a POA is considered if you are new parents, newly retired, business owner or newly diagnosed with a terminal disease. As Estate Planners, we remind all our clients the importance of electing a Power of Attorney and the job they are committed to. Of course, you can choose more than one POA but it is best to layout their roles and specific duties so there is no confusion establishing your future goals.