Power Of Attorneys And Estate Planning
Estate Planning And Power Of Attorneys
Most people put off writing a will and organising their estate concerns and matters.
It is often not until a family member dies that they witness the consequences of what happens when families start bickering about what is theirs and how the estate should be administered and divided up.
It can bring out the worst in people and cause lasting rifts in families.
Having your Estate Planning and Power of Attorney intentions laid out in advance may not be a pleasant concept, but it will help prevent disagreements and fights between your children and other family members.
It will also protect you if you require the assistance of an advocate or Power of Attorney to manage your money and medical care.
What Is A Power Of Attorney?
A General Power of Attorney handles financial problems.
This ensures that bank transactions, the purchase or sale of real estate and stock, the management of bills, and the payment of taxes can be handled on your behalf.
You should consider appointing a General Power of Attorney if:
For example, you may be travelling overseas, undergoing an extended hospital stay, or your limited mobility prevents you from visiting banks, shops, or the post office.
In this situation, your general or financial power of attorney would represent you in dealings with lawyers, banks, estate agents, and anybody else concerned in financial concerns.
When you can manage your affairs again, you can stop or revoke this.
Assume you become incapacitated and are unable to manage your affairs. A general power of attorney will be revoked in that situation. You may then be transferred to an Enduring Power of Attorney, or EPOA, which you may already have in place as part of your estate preparation.
If this is not the case, you may be assigned a trustee or guardian to act on your behalf.
If you lack Power of Attorney, your loved ones may have to go through a lengthy court or legal process to be officially designated as your substitute decision-maker to assist you in managing your financial matters.
It is also possible that a court will refuse to appoint the person you would NOT have picked to make these choices.
When the time comes for you to need a reliable “stand-in,” you’ll want that individual to be familiar with their responsibilities, right? As a result, your Attorney should be someone who is familiar with and understands your objectives and life plans and can make decisions with which you are comfortable.
Because your Attorney has the same legal authority as you, they should be someone you trust and who has your best interests in mind. Furthermore, they must be able to separate their emotions from the decisions that must be made and have the confidence to deal with the conflicting viewpoints of family, friends, and medical providers.
A Power of Attorney can be granted to anyone above 18.
When naming a Power of Attorney, these are the most typical relationships.
Your spouse; your siblings; an adult kid; or a trustworthy friend
You can appoint a competent attorney-in-fact for financial problems, such as a lawyer or accountant. While this choice alleviates the stress on a family member or close friend, it usually comes at a cost.
There are several constraints on who can be appointed depending on the state or territory.
Having more than one in Queensland is possible, and you can have up to four.
You must specify who is responsible for what and how they are to act or make decisions.
Your lawyer is legally required to operate in your best interests and not to benefit directly from your activities unless you expressly desire it.
It is critical that you maintain your money and assets separate from the lawyer’s.
Your attorney-in-fact must also document and defend their activities and conclusions with relevant records and proof.
The greatest approach to secure decision-making for your family after the fact is for you to make these decisions while you are still cognitively capable.
What If I need Medical or Health Related Matters Looked after?
A General Power of Attorney can only take care of your financial needs while you are still capable of making decisions.
An Enduring Power of Attorney or an Advanced Medical Directive may be required.
Permanent Power of Attorney
And an Enduring Power of Attorney will be appointed to handle all your financial, estate, and healthcare matters.
You must have complete trust in those you choose, and it is a good idea to seek legal counsel to truly grasp the phases and duties they will play in managing your affairs.
A Health Care Power of Attorney
They will exclusively care for your medical needs and your health and lifestyle choices.
You can appoint one before surgery or if you have a chronic medical condition, such as kidney disease or diabetes, that will necessitate ongoing health concerns and medical interventions.
Your medical power of attorney would be your voice in dealings with doctors or nurses.
When does a Power of Attorney go into effect?
Each is unique.
You can provide times, such as travel dates if you are abroad.
They may become operational as soon as the documentation is finalised and signed.
Is it possible to cancel a power of attorney?
You can revoke a Power of Attorney as the granter at any moment as long as you are mentally competent.
If you die, your Power of Attorney will expire, and the executor will take over the operations of your estate.
In some jurisdictions and territories, cancelling a Power of Attorney necessitates the completion of specific forms. Contact the appropriate state or region for more information on revocation.