3 Big Reasons You Should Have A Financial Power Of Attorney

A power of attorney is a legal arrangement that allows someone else to make decisions on your behalf, in the event that you are unable to make those decisions for yourself.

Just as an example, if you are in a coma, you may not be able to make medical decisions for yourself. By setting up a power of attorney, someone else can make those medical decisions for you. And, these decisions can be in accordance with your exact medical wishes.

By going over three big reasons you should have a financial power of attorney, and speaking with a Florida estate planning lawyer at the Millhorn Elder Law Planning Group today, you may have an easier time ensuring that your wishes are honored. 

Reason 01: You Get To Choose A Trustworthy Person To Manage Your Finances 

If you are unable to make financial decisions, someone else may be appointed to make these decisions. This person may not be right for the job and, depending on who is appointed, they may not have your best interests in mind.

A good example of the above is as follows: you are in a car accident and are put into a medical coma for several weeks. Your brother is appointed to oversee your finances. But, your brother doesn’t know how to do this and, as such, makes a number of poor decisions that damage your finances.

You can use a power of attorney to ensure that the right person to manage your finances will be given that position, in the event that you are unable to make financial decisions for yourself. 

Reason 02: You Can Take Care Of Your Financial Obligations 

Being incapacitated does little to stop the seemingly-endless flow of bills that almost all of us must attend to. And, if you are unable to make financial decisions, these bills may go unpaid for a long period of time.

If you do not pay your mortgage for a long period of time, due to being incapacitated, there is a chance you might lose that house. Or, if you do not pay specific debts that come with interest, those debts could grow by a great deal during a period of incapacitation. This is true, even if you have the money to satisfy these obligations.

A power of attorney grants someone else the power to make financial decisions on your behalf. This person can ensure that your bills are paid on time, any debts are addressed, and that your financial obligations are satisfied. 

Reason 03: You Will Be Able To Purchase The Things You Need 

You may need certain things, while incapacitated. But, if you are unable to purchase these things, due to your incapacitation, you may be forced to go without those things. This applies to your pets and loved ones, as well.

Here is one example of the above: you have three cats and two dogs that need food, a regular visit to the groomer, and specialized medicine. But, you cannot purchase these things – even though you have the money – because you are incapacitated and no one has access to the funds they need to make these purchases.

Using a power of attorney allows your financial obligations to be satisfied in accordance with your wishes. This includes the people that depend on you and your income. 

Speak With A Florida Estate Planning Lawyer Today 

If you would like to develop a power of attorney, you may want to work with a legal professional. Speak with a Florida estate planning lawyer today and we will help you set up a power of attorney that satisfies your wishes. 

Sources: 

law.cornell.edu/wex/power_of_attorney

consumerfinance.gov/ask-cfpb/what-is-a-power-of-attorney-poa-en-1149/