There are many different documents you need to have in place as you prepare for your estate planning and what will happen to you if you were to be become incapacitated. However, you need to understand the differences between a power of attorney and a durable power of attorney.
A simple power of attorney becomes legally invalid as soon as you become incapacitated. A durable power of attorney is different. Many financial institutions and real estate title companies are hesitant about working with durable power of attorneys because they are concerned that it could have been revoked by the creator and that a different one could have been put in place.
The individual who could be arguing that he or she serves as your financial durable power of attorney may be trying to steal money from you. It can be difficult for a financial agent to use a durable power of attorney as a result. The more recent the power of attorney is, the more likely it will be honored. But of course, this varies by the institution in question and varies from state to state. Make sure that you find out the necessary criteria from real estate title companies and financial institutions when it comes to putting together a power of attorney. This information can be shared directly with your estate planning lawyer.
Some people also choose to set up a revocable living trust in order to avoid the potential problems with the power of attorney. This document acts somewhat like an enhanced version of a power of attorney because financial obligations are typically obligated legally to comply with the terms. No matter what document is right for you, it is important to schedule a consultation with an experienced estate planning attorney as soon as possible.
