Blog

A Closer Look at Power of Attorney What You Should and Shouldn’t Do

Introduction

Estate planning refers to making all the relevant arrangements to your estate and possessions, whether it’s long-term medical treatment or unexpected departure. Think of estate planning as a way to make sure only the right person gets complete control over your financial (and health) decisions. In Queens, “estate” can include vehicles, land properties, investments, bank accounts, jewelry items, furniture, and any item with value.

Thepower of attorney comes into the picture when people experience health crisesor simply don’t have the requisite capacity to take care of their financial andlegal affairs. A power of attorney in place allows you to appoint aprofessional third-party attorney to assume legal authority over your bankaccounts, real estate assets, and money.

Thepower of attorney refers to a legal document that allows you to hire a third-partyprofessional attorney. You can count on this attorney to represent you and makesure your wishes are fulfilled. The hard truth is that someone will have totake certain decisions on your behalf in the foreseeable future. Powerof attorney makes sense when you decide to travel overseas. You don’t have tothink in terms of worst-case scenarios. In fact, you can use power of attorneyto appoint someone you trust to manage your finances and cover bills in your absence.

What You Should Do

Hereare essential do’s of the power of attorney for the principal:

  • Make sure thepower of principal is free to act on his own volition
  • Take yourtime and read the assigned restrictions and powers in Power of Attorney.
  • Make sureyour attorney keeps records of transactions on your behalf.
  • Understandthe timeframe for the power of attorney document to be effective.
  • Make sureyou have more than one copy of the power of attorney.
  • Make sure theattorney keeps a thorough record of purchase receipts.
  • Hire a professionallawyer and accountants that you can trust to take care of your finances andlegal matters. 

What You Should Avoid

Estate planning also allows you to minimize the overall tax impact on the inheritance. On top of all, if you want to resolve family disputes, estate planning allows you to be specific and cut out potential disagreements among family members and relatives.

No Estate Plan is Too Simple or Complex

Hereare common elements the principal should avoid in the power of attorney:

  • Make sureyour attorney does not pay cash to cover expenses on your behalf.
  • Don’t makethe mistake of withdrawing cash from your power of principal account.
  • Make sureyour attorney doesn’t add his or her name to your financial accounts andproperty.
  • Make sureyour attorney doesn’t use debit or credit cards to cover personal expenses onyour behalf.
  • Make surethe attorney doesn’t make key payments without your consultation.
  • Don’tchange your beneficiary designations on all your financial accounts.
  • Don’tassign property or money to anyone without consulting with your attorney.
  • Don’t makethe mistake of combining your money and property with the principal account.

Estate planning can come across as a tedious and complex process and this is where you should reach out to estate planning attorneys in Queens, NY. A professional and experienced lawyer can take care of your estate plan, documentation, and will fulfillment.  

Final Thoughts

Withoutan appointed power of attorney, no one will be able to uphold your wishes.Also, don’t be lulled into believing that power of attorney is something youhave to do in the last cycle of your life. When a high degree of uncertaintycomes into play, power of attorney serves as an ideal solution. Through anexperienced attorney, you can expect professional and prompt representation.

Lifeis full of good and bad surprises and the last thing you want is to experiencedoubt about your legal and financial issues. From business advice to estateplanning to finance management, you can count on your attorney when you’re notavailable for any reason.

REFERENCES:

  1. https://www.kells.com.au/insights/wills/powers-of-attorney-the-dos-donts-and-the-red-flags-you-need-to-watch-out-for/
  2. https://www.consumermojo.com/power-of-attorney-dos-and-donts/
  3. https://www.fillmoreriley.com/newsletter-articles/article/148
  4. https://www.clapham-collinge.co.uk/acting-as-an-attorney-the-dos-and-donts