Seminole Durable Power Of Attorney
For most people, the durable power of attorney is the most important estate planning instrument available--even more useful than a will. A power of attorney allows a person you appoint -- your "attorney-in-fact" -- to act in your place for financial purposes when and if you ever become incapacitated.
In that case, the person you choose will be able to step in and take care of your financial affairs. Without a durable power of attorney, no one can represent you in any matter unless a court appoints a guardian. The guardianship process takes a long time, is very expensive, and the judge may not choose the person you would prefer. Once established, a guardianship is even more cumbersome, where your guardian may have to seek court permission to take planning steps that her or she could implement immediately under a simple durable power of attorney.
A power of attorney may be limited or general. A limited power of attorney may give someone the right to sign a deed to property on a day when you are out of town. Or it may allow someone to sign checks for you. A general power is comprehensive and gives your attorney-in-fact all the powers and rights that you have yourself. The vast majority of powers of attorney we create are durable powers of attorney, meaning they survive your incapacity.
A power of attorney may also be either current or "springing." Most powers of attorney take effect immediately upon their execution, even if the understanding is that they will not be used until and unless the grantor becomes incapacitated. However, the document can also be written so that it does not become effective until such incapacity occurs. In such cases, it is very important that the standard for determining incapacity and triggering the power of attorney be clearly laid out in the document itself. Because of the inherit problems with activating the power of attorney, we rarely use the "springing" variety.
The use of a Durable Power of Attorney is limited in some circumstances. Generally speaking, our clients frequently have difficulty in getting banks or other financial institutions to recognize the authority of an agent under a durable power of attorney. A certain amount of caution on the part of financial institutions is understandable: When someone steps forward claiming to represent the account holder, the financial institution wants to verify that the attorney-in-fact indeed has the authority to act for the principal. Still, some institutions go overboard, for example requiring that the attorney-in-fact indemnify them against any loss. This is why your power of attorney should be updated in frequent intervals, at least ever ten (10) years, if not more frequently.
To schedule an initial consultation to discuss a durable power of attorney, call us at 727.475.6680 or contact us online any time.
