When are Powers of Attorney Required?

One common estate planning misconception is when powers of attorney are required.

Powers of attorney are required if you are determined to be incompetent. Incompetency can mean a mental illness or a physical ailment, such as being unconscious.  What a power of attorney does is grant someone with authority to make decisions on your behalf.

Most people don’t realize that a power of attorney is required even if it is your spouse or child. For your child, once they turn 18, a power of attorney is required for someone to make decisions on their behalf.

A spouse does not automatically have the right to make decisions on behalf of their significant other. In most cases this won’t matter since you are most likely a joint owner on their checking account anyway. However, for example, if you wanted to sell your home, you would need a power of attorney if your spouse is incompetent.

Without a power of attorney, the only other way to be granted with the required authority is to go through a relatively long and costly guardianship court procedure. A power of attorney is a simple way to fix this problem.

If you don’t have any powers of attorney in place or if you have any questions, please contact me.

-Matt

© 2016 Matthew D. Brehmer and Crummey Estate Plan.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s