What Powers Should Be Included In My Durable Power of Attorney Documents?

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Power of Attorney Documents are essential in the event of a serious illness or even death. If you have yet to create and organize your Power of Attorney Documents, consider the following information to better prepare your finances.

General Provisions

First and foremost, your Power of Attorney Documents are set forth to give a specified agent the power to handle your financial matters. Ultimately, the documents you need to include in your Power of Attorney are dependent on your assets. An agent of your choosing will then have power over the following:

  • Property
  • Loan information
  • Debt Payments
  • Safe Deposit Boxes
  • Insurance
  • Securities
  • Retirement Accounts
  • Public Benefits

And virtually any number of financial assets. As you can see, preparing the right documents is of paramount importance for the financial security of your family. The more specific your powers are the less power your agent will have over these assets, however. Additionally, the more financial investments you have the greater attention should be paid to each one of them. Otherwise, your agent may be restricted as to what he or she can do for you later on. However, there are certain requirements that must be met prior to rights being granted to your agent.

Powers Must Be Specifically Granted

The law makes specific provisions for those who implement a Power of Attorney. These provisions are extremely specific and narrow down how much “power” your agent ultimately has over your financial belongings and investments. These rights include the power to create, modify, revoke, or terminate any trust in your name, revoke any property gift rights, create and change survivorship interests which can include property and liquid assets. An agent will also have power to designate beneficiaries as well as any property or finances they may claim after the principal passes away.

Additional Powers

Some powers are only granted if your Power of Attorney specifically grants them. If it does not, your agent’s hands may very well end up tied regarding certain matters. These powers include making a loan to the agent, terminating, revoking, or executing a will as well as altering any specific trust agreements. If you see the need for your attorney to have any of the aforementioned powers, then be sure and discuss this issue with them in person. Doing so could save your family much trouble and stress in the long-run.

What You Should Keep in Mind

If you pass away, your Power of Attorney will be the only document that represents your wishes and the benefits of your beneficiaries. Obviously, creating a Power of Attorney is incredibly important and the more financial gain you have the more important it becomes. Speaking with an attorney one-on-one is the best way to decide on the placement of your assets once you pass away. Once you do, you can rest soundly knowing your family is well taken care of in the event of an accident.