What questions should you ask your lawyer when preparing a financial POA document? Here are ten questions to get the conversation started:
- Should I name agents to serve as POA jointly, separately, or in a specific order?
- How many “back-ups” should I have in case my first named POA is deceased or otherwise unable or unavailable to act on my behalf?
- Should I include powers that permit estate planning or Medicaid planning to protect assets from nursing home costs? What are the risks and potential benefits of including this authority?
- Should the POA be effective immediately, or should it be a “springing POA” that only takes effect upon my incapacity?
- Can my agent “take over” and sell my house or other assets against my wishes? I don’t want to lose control, how to I make sure things are done properly?
- Are there any safeguards or “checks and balances” that I should include in the POA? When should I limit my agent’s authority.
- Is my agent accountable to anyone? Should I require my agent to provide copies of financial statements to certain people?
- Should I lower the “standard of care” to reduce my agent’s risk of personal liability for taking on the responsibility of serving as my POA?
- When should I give my agent a copy of the POA? Where should I keep the original POA document?
- Going forward, how often should I update my POA?
If you wish to have our office help you with your estate planning documents, including preparation of your will, financial POA, healthcare POA, and possibly a trust if appropriate for your situation, please call or contact us through this website.
