Top 10 Reasons Everyone Needs a Comprehensive Power of Attorney
PART II
10. Provides Immediate Access to Critical Assets A well-crafted power of attorney includes provisions that allow the agent to access critical assets, such as the principal’s digital assets or safety deposit box, to continue to pay bills, access funds, etc., in a timely manner. Absent these provisions, court approval will be required before anyone can access these assets. Digital assets are also important because older powers of attorney did not address digital assets, yet more and more individuals have digital accounts. Bonus — Provides Peace of Mind for Everyone Involved Taking the time to sign a power of attorney lessens the burden on family members who would otherwise have to go to court to get authority for performing basic tasks like writing a check or arranging for home health services. Knowing this has been taken care of in advance is of great comfort to families and loved ones. Conclusion This discussion of the Reasons Why Everyone Needs a Comprehensive Power of Attorney could be expanded by many more. Which benefits are most important depends on the situation of the principal and their loved ones. This is why a comprehensive power of attorney is so essential: Nobody can predict exactly which powers will be needed in the future. The planning goal is to have a power of attorney in place that empowers a succession of trustworthy agents to do whatever needs to be done in the future when “life happens.” –Mark Martella, Esq.
Last month, I wrote about the importance of having an effective power of attorney in place and provided the first five reasons you need one. In this month’s article, I give you five more reasons (and a bonus reason) why it is so important for you and your loved ones to have a proper and enforceable power of attorney in place BEFORE “life happens!” 6. Prevents Delays in Asset Protection Planning A comprehensive power of attorney should include all of the powers required to do effective asset protection planning. If the power of attorney does not include a specific power, it can greatly dampen the agent’s ability to complete the planning and could result in thousands of dollars lost. While some powers of attorney seem long, it is necessary to include all of the powers necessary to carry out proper planning. 7. Protects the Agent From Claims of Financial Abuse Comprehensive powers of attorney often allow the agent to make substantial gifts to self or others in order to carry out asset protection planning objectives. Without the power of attorney authorizing this, the agent (often a family member) could be at risk for financial abuse allegations. 8. Allows Agents to Talk to Other Agencies An agent under a power of attorney is often in the position of trying to reconcile bank charges, make arrangements for health care, engage professionals for services to be provided to the principal, and much more. Without a comprehensive power of attorney giving authority to the agent, many companies will refuse to disclose any information or provide services to the incapacitated person. This can result in a great deal of frustration on the part of the family as well as lost time and money. 9. Allows an Agent to Perform Planning and Transactions to Make the Principal Eligible for Public Benefits One could argue that transferring assets from the principal to others in order to make the principal eligible for public benefits — Medicaid and/or non-service-connected Veterans Administration benefits — is not in the best interest of the principal, but rather in the best interest of the transferees. In fact, one reason a comprehensive durable power of attorney is essential in elder law is that a judge may not be willing to authorize a conservator to protect assets for others while enhancing the ward/protected person’s eligibility for public benefits. However, that may have been the wish of the incapacitated person and one that would remain unfulfilled if a power of attorney were not in place.
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