Do I Need A Power Of Attorney?
When most people hear of estate planning, they think of creating a final will and testament; however, there are other important documents that should be included in an estate plan. One of these documents is a power of attorney form, which designates an important decision maker for you and your estate. If you are interested in learning more about power of attorney and other estate planning documents, contact the Franklin estate planning lawyers at Fort, Holloway & Rogers today to schedule a consultation today.
What Does a Power of Attorney Do?
A power of attorney is a person designated to make all legal and financial decisions on your behalf in situations where you cannot communicate those choices yourself. Illness and injury are usually the reasons why a power of attorney must be enacted, and while many people think that this document is only necessary in your old age, the truth of the matter is that an accident or illness can happen at any time.
There are many decisions that a power of attorney is allowed to make on your behalf and on behalf of your estate. Some of the most common examples of decisions regularly made by a power of attorney include the following:
- Deposit and withdrawal money in your bank accounts,
- Buy and sell financial securities on your behalf,
- Buy and sell real estate for you,
- Determine where you live,
- File taxes on your behalf, and more.
Who Should I Name as Power of Attorney?
It is critical that you take time to consider who will be named as your power of attorney. This person must be someone that you can trust completely with your legal and financial affairs, given the substantial latitude a power of attorney has in controlling your estate. In many cases, the person named as power of attorney is a spouse, child, or other close family member. Outside of the family, a person’s attorney or financial advisor is also often named to this responsibility. It is also good planning to name a secondary power of attorney in case something happens, and the first named power of attorney can no longer perform those duties. Without a backup named, it is often up to the court in this situation to determine who should make decisions for you.
Different Types of Power of Attorney
There are also different types of power of attorney that can be crafted for your estate plan that all have varying levels of decision making ability and can be enacted under different circumstances. The main types of power of attorney include the following:
- Durable power of attorney,
- Springing power of attorney,
- General power of attorney,
- Financial power of attorney, and
- Medical power of attorney
To learn more about the different types and draft a power of attorney for your estate, talk to our office today.
Call or Contact Us Now
Are you interested in including a power of attorney in your Tennessee estate plan? If so, call the office or contact us at Fort, Holloway & Rogers today to schedule a consultation of your estate planning needs.