Understanding Power Of Attorney
Life can come at you quickly. Accidents, health emergencies, and diseases of age may render you unable to manage your financial affairs. Someone will need to pay bills, manage investments and make financial decisions on your behalf. While incapacity can place major strain on your finances, creating a durable power of attorney will help ease these potential burdens.
---- Top 3 Reasons Why Power Of Attorney Is Important
Power of Attorney is said to aid in handling financial burdens, but what does this really entail?
The following is a breakdown of the Top 3 matters power of attorney will authorize people to handle in order to aid you in your time of need:
1. Managing Financial Affairs - This includes all bill payments/collections and banking & investment withdrawals/transfers. Examples include child support payments, collecting rent, writing checks and making withdrawals and transfers of your finances, and handling insurance payments to keep your medical coverage continuous.
2. Handling Home Repairs - What to do about your home repairs, should you be incapacitated, may not be something you think of when it comes to things power of attorney will assist with, especially if you have a living spouse. However, your spouse may not be able to handle these concerns on their own, rendering them legally incapacitated also. This is where power of attorney can step in to help care for property matters so that your necessary financial funds can be raised, should you need to sell your home to do so.
3. Communication - Power of attorney will also be available to handle discussions with financial your financial institutions concerning banking, financial, and retirement accounts. They can also notify creditors and handle temporary payment negotiations. And finally, they can communicate with your employer or business partners regarding your job and business matters.
To find out more about how a power of attorney can be helpful read this article:
Probate & Who Inherits Your Mortgage
After you pass, your loved ones may have to go through probate, depending on how you set up your estate and your state’s laws. This process essentially allows the will to be contested by your heirs and allows creditors to make any claims against your estate. Depending on the circumstances of your will and everyone’s relationship with you and each other, this can be a time of significant conflict.
Read more to understand possible scenarios that may arise when handling your estate here:
---- Protect Your Children With A Trust
Trusts give you control of your assets, even after you are gone, and ensure that your children can inherit your assets even if they are minors. Sadly, due to life insurance payouts, many people are worth more after they are gone, but you don't need to be wealthy in life to understand the importance of having a Trust in place. With a Trust, you can make decisions based on your values about what is best for your family after you are gone.
Read more about the benefits of having a trust and how to make one here: