A durable power of attorney (DPOA) goes into effect as soon as the legal paperwork is signed and expires when you die. As long as you are deemed competent, you may revoke a DPOA at any time.
Reasons for establishing a durable power of attorney
Many people establish a DPOA when they get older and start experiencing difficulty managing finances. By appointing a power of attorney, the POA agent can handle paying bills, managing bank accounts, overseeing investments, and preparing and filing tax returns on your behalf, which becomes increasingly important as you age and are no longer able to handle these duties.
What happens if you don’t name a power of attorney?
If a POA isn’t named, a potential agent may apply to the court to be named your guardian or conservator. Compared to naming a POA, guardianship proceedings can be time-consuming, expensive, and stressful. In addition, there is the risk that the court may appoint someone as a guardian or conservator who you might not have chosen or preferred.
How much does it cost?
Naming a POA through a legal website generally costs under $50 and can cost as little as $15. If you establish a POA with an attorney, the costs may be higher but may still ultimately be less than the cost of a guardianship or conservator proceeding.
Things to Consider:
- If you have any assets at all − home, car, bank accounts, investments − you could really benefit from naming a POA.
- It’s important to pick someone you trust without question to serve as your durable POA.
- If you don’t name a POA, and the courts are forced to assign someone, it might not be the person you want.
- Rest easier knowing that if you have an accident or experience any form of diminished capacity, your finances are in good hands.
This article is provided by Everplans − a life and legacy planning company dedicated to transforming the way people get their families organized. For more information, visit:everplans.com
Neither Transamerica nor its agents or representatives may provide tax, investment, or legal advice. Anyone to whom this material is promoted, marketed, or recommended should consult with and rely on their own independent tax and legal advisors and financial professional regarding their particular situation and the concepts presented herein.