Financial Powers Of Attorney

Powers of Attorney empower others to act on your behalf so long as you are living. They should be a part of every complete plan. Agents named in financial powers of attorney can authorize distributions from retirement accounts, such as IRAs and 401Ks, to satisfy minimum distribution requirements or simply to meet your needs. They can sign tax returns, transfer assets to your trust and deal with a host of other matters.

However, they have limitations. Financial institutions are often reluctant to honor them, for good reasons. Laws governing powers of attorney require banks and other financial firms to refuse to honor powers of attorney if the firm “knows” that an agent is misusing them. Consequently, banks will refuse to honor powers of attorney if there is the slightest risk of abuse. This, and the fact that they stop working when the person who signed it dies, are why we urge our clients to create and use trusts; trustees can continue to administer trust assets after the person who signed it dies.

The Pros And Cons Of Creating A Power Of Attorney

Powers of attorney play a supporting role in every complete estate plan. Trustees can only deal with assets that are titled to the trust. Executors named in your will can only act after you have died. The same individuals, if named as agents under powers of attorney, can deal with a wide variety of matters that lie outside the trust while you are still among the living, including:

• Managing retirement accounts, such as IRAs and 401ks
• Signing tax returns
• Transferring assets to your trust
• Monitoring your health care and making medical decisions

However, powers of attorney are frequently regarded with suspicion by financial institutions, particularly if you are no longer able to confirm their continued validity. If an agent named in your power of attorney asks to withdraw funds from a bank that has never seen the document before, at a time when you are unable to accompany that person to the bank or even pick up the phone to talk to a bank officer, it should come as no surprise that the bank may refuse to honor the document.

Powers of attorney also stop working after you have died, creating a gap in management authority that requires probate to resolve. Powers of attorney can be useful, but they work best when paired with other estate planning tools, including trusts and wills.

What Kind Of Lawyer Do You Need For Your Power Of Attorney?

When it comes to creating powers of attorney, you need a lawyer who has experience in estate planning and elder law. Our attorneys have the knowledge and experience to guide you through the process. We can help you create a complete and comprehensive plan that protects your assets and loved ones.

Our lawyers are committed to providing direct attorney access and transparent pricing with no hidden costs. We offer comprehensive estate elder law services to ensure your power of attorney is effective.

Take The First Step Toward Securing Your Future

A complete estate plan includes several documents: a trust, a will, financial powers of attorney, medical powers of attorney, a medical declaration and deeds to convey real estate to your trust. You need estate planning attorneys who can prepare all these documents to form a harmonious set of instruments that work together in harmony.

At the Law Office of Kevin A. O’Brien, we offer no-obligation consultations and are committed to providing personalized attention and services. Call us at 302-888-2707 or fill out our online contact form to schedule a consultation. We are here to help you create a comprehensive power of attorney.