The power of attorney is a document that authorizes a person or organization to manage a person’s or group’s assets and finances. This person or organization can act in your behalf for many different purposes. For example, financial transactions such as bank deposits, withdrawals, and stock trading can be managed by the designated agent. The agent is the person or organization you authorize to control your assets and on-going tasks.
The power of attorney can authorize the agent to handle even more sensitive issues, such as filing tax returns, buying or selling property rights, or even applying for government-sponsored programs such as Medicare.
These extensive powers can all be altered in the power of attorney to fit different needs. For example, a single mother of two children undergoing surgery may sign a power of attorney to authorize a close relative to take care of household tasks. Another example could be a grandfather diagnosed with cancer who needs someone to take care of his house and his financial assets.
However, the benefits of the power of attorney do not stop at the temporarily disabled. A rich businessman on a three-month vacation may need to sign a power of attorney to allow an assistant or relative to handle his stocks and bonds. For such important matters, it is possible to appoint more than one agent. Appointing alternate agents is also a possibility; if one agent cannot perform the tasks assigned to them, the other agent will be able to substitute.
It is important to choose someone important and extremely trustworthy to be your agent. However, in the worst-case scenario, remember you are always in control of your assets at all time. Furthermore, the power of attorney can be made extremely flexible. For example, it is possible to cancel a power of attorney on a specific date or when you die. You are always able to cancel the power of attorney at any time.
Because of this extreme flexibility, you can be sure that the power of attorney is a secure way to ensure your assets are taken care of. You must fully understand the terms you will write in it and you must understand the extent of the powers you grant to your agent. The power of attorney must be signed by at least two witnesses: an acknowledgement of the document itself.
Don’t forget that it is important to always consult a lawyer before signing your power of attorney. The powers that you grant in the document are very powerful, and one word could make all the difference.
How We Can Help
CTK Law Group can assist you with ensuring that your loved ones and assets are protected. Our trust packages provide all the necessary documentation associated with a living trust, including but not limited to a power of attorney. We can also provide services for clients who only want to obtain a power of attorney. Our attorneys take the time to assess your situation and offer free 30-minute consultations. Contact us today!