Shade shadow in the Durable Power of Attorney

Aug 6th, 2022
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How to shade shadow in the Durable Power of Attorney

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Hi. This is Lee Phillips. I want to talk about durable powers of attorney for two seconds. Its one of what I consider the four things that you need in estate planning. You need the will, the living revocable trust, the durable power of attorney, and the living will. The durable power of attorney handles your matters when you cant function for yourself. You become incompetent. And actually, statistically, you are, like, five times more likely to be incompetent next week than you are to be dead next week. And dealing with an incompetent persons property is actually harder than dealing with a dead persons property. So the family needs to have the assurance that you have what we call a durable power of attorney. Now, the power of attorney is a document that allows somebody else to stand in and then represent you in this matter. I remember when my uncle went to the Korean War. He had a pink convertible Thunderbird, which we still had, and he gave grandpa a power of attorney to sell the

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What do I do? After being certain that the Power of Attorney gives you the authority to do what you want to do, take the Power of Attorney (or a copy) to the third party. Explain to the third party that you are acting under the authority of the Power of Attorney and are authorized to do this particular act.
The durable power of attorney In other words, youd use a durable POA if you wanted to give your agent authority once youre unable to act for yourself. Because of this, many consider a durable POA to be the most powerful type of power of attorney.
DPOA vs POA A standard POA automatically becomes invalid if the person who made it (the principal) becomes mentally incapacitated. On the other hand, a Durable Power of Attorney remains in effect even if the principal becomes mentally incapacitated.
When you give someone durable power of attorney (DPOA), they maintain their role even in the event of your incapacitation. Durable power of attorney is an important tool in estate planning. If youre unable to make end-of-life decisions, the individual you choose can make decisions on your behalf.
The difference has to do with whether the powers remain effective after the onset of a disability. That is, the regular power of attorney ceases to be effective if you become disabled, whereas the durable power of attorney continues to be effective despite your subsequent disability.
The most glaring disadvantage of any Power of Attorney is that you are forced to trust another person to handle some or all of your financial affairs. This person can have total power and control over these affairs and is allowed, by law, to make discretionary decisions regarding these affairs.
What does power of attorney durable mean? A durable POA gives someone else legal authority to act on your behalf, and it continues in force even if you lose your mental capacity. Financial POAs give your agent financial powers that may include managing your assets, paying bills, and buying and selling real estate.

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