Estate Planning Newsletter

Trusts & Powers of Attorney

If you become incapacitated, who is supposed to make decisions for you about the management of your property or your health care? A durable power of attorney allows someone you designate to act on your behalf. It is usually included as part of an estate plan.

A durable power of attorney is different from a non-durable power of attorney because it remains in effect even when you are incapacitated.

You are the “principal” when you create the durable power of attorney, and the “attorney-in-fact” is the person you appoint. Your attorney-in-fact may have the power to carry out all the same activities as you. An attorney-in-fact may be anyone close to you, such as a spouse, relative or close friend. In other words, an attorney-in-fact does not have to be an attorney.

Property Management

The attorney-in-fact designated for managing your property should adhere to your own standards of care. Also, this attorney-in-fact should:

• Avoid conflicts of interest
• Follow your directions
• Keep regular contact with you
• Maintain records of all transactions

Your attorney-in-fact for health care has the duty to make health care decisions for you. Some states have simplified this process. For example, California has a Health Care Decisions Law that makes it easier to name someone to act on your behalf for medical treatment decisions.

More Than One Permitted

You may assign more than one power of attorney to carry out your property management or health care wishes. Usually, if there are 2 or more attorneys-in-fact, they must agree on what actions to take on your behalf.

© 2024 NextClient.com, Inc. All rights reserved.

• When Witnesses to Wills are Necessary
  A witnessed will is only one of several different types of wills. It is also referred to as a “formal” or “attested” will, and involves the eyewitness participation of other... Read more.
• The Unexpected Consequences of Creating Your Own Estate Planning Document
  Estate planning attorneys utilize a number of different estate planning techniques to accomplish the goals of their clients and sometimes to minimize transfer taxes. One common estate planning technique is the transfer of assets into an... Read more.
• What is a Special Power of Appointment?
  What is a Power of Appointment? A power of appointment is the power given by one person to another (referred to as the “holder” of the power of appointment) to designate who is to receive an asset.... Read more.
• The Annual Exclusion and Gift Taxes
  A gift tax is a tax on the privilege of making gifts to others while the taxpayer is still living. The gift tax supplements the estate tax, which taxes gifts made upon death. The gift tax was created to frustrate the attempts of those... Read more.

• Nation’s Largest Lender Sues HUD Over Appraisal Regulations, With Legal “Tightrope Impossible to Walk” Looming Over Company
• Little Rock’s Immanuel Baptist Church and Former Leaders Face Lawsuits Over Child Sexual Abuse Allegations
• The Father of NY Homeless Man Who Died In Chokehold on Subway Files a Lawsuit Against Acquitted Marine
• Podiatrist and Patient Recruiter Sentenced to Four and Five Years in Prison, Respectively, and Ordered to Pay $8.5M in Healthcare Fraud Scheme
• Federal Judge’s Misconduct Leads to Overturned Conviction and Exposes Legal Scandal