What is a Guardian? Guardians are appointed by the courts for people who are no longer able to act in their own best interests. A person who has a Guardian appointed by the courts may not be able to lawfully execute a Power of Attorney. If you find out that a Guardian had been appointed prior to the date the principal signed the Power of Attorney, you should advise your lawyer. The law requires that whoever starts the Guardianship proceeding give the attorney-in-fact notice. If a Guardian is appointed after the Power of Attorney was given to you, the…
What is a Power of Attorney for Health Care? A Durable Power of Attorney for Health Care (sometimes called an “Advance Directive”) is a document whereby a person designates another to be able to make health care decisions if he or she is unable to make those decisions for him- or herself. A Power of Attorney can be drafted to give these same powers so there is not much difference. However, a Durable Power of Attorney for Health Care is totally dedicated to health care whereas the Power of Attorney can be much more comprehensive. Because the statutes…
What is the difference between an attorney-in-fact and an executor? An Executor, sometimes referred to as a “personal representative,” is the person who takes care of another’s estate after that person dies. An attorney-in-fact can only take care of a person’s affairs while they are alive; therefore, the Power of Attorney ends when the principal dies. An executor is named in a person’s will and can only be appointed after a court proceeding called “probate.” What is the difference between a Living Trust and a Power of Attorney? A Power of Attorney empowers an attorney-in-fact to do…
What is “fiduciary responsibility”? As an attorney-in-fact, you are fiduciary to your principal. A “fiduciary” is a person who has the responsibility for managing the affairs of another, even if only a part of that person’s affairs are being managed. A fiduciary has the responsibility to deal fairly with the principal and to be prudent in managing the principal’s affairs. You, as an attorney-in-fact, are liable to third parties only if you act imprudently or do not use reasonable care in performing your duties. If ever you are acting as an attorney-in-fact and are unsure as to whether…
When is a Power of Attorney effective? The Power of Attorney is effective as soon as the principal signs it, unless the principal states that it is only to be effective upon the happening of some future event. These are called “springing” powers, because they spring into action upon a certain occurrence. The most common occurrence states that the Power of Attorney will become effective only if and when the principal becomes disabled, incapacitated, or incompetent. Okay. I’m ready to do something as an attorney-in-fact. What do I do? After being certain that the Power of Attorney…
What can I do as an attorney-in-fact? Powers of Attorney can be used for most everything but an attorney-in-fact can only do those acts that the Powers of Attorney specifies. Powers of Attorney should be written clearly so that the attorney-in-fact and third parties know what the attorney-in-fact can and cannot do. If you, as attorney-in-fact, are unsure whether or not you are authorized to do a particular act, you should consult the attorney who prepared the document. What can’t I do as an attorney-in-fact? There are a few things that an attorney-in-fact is forbidden to do…
A Durable Power of Attorney may be the most important of all legal documents. This legal document gives another person the right to do certain things for the maker of the Power of Attorney. What those things are depends upon what the Power of Attorney says. A person giving a Power of Attorney can make it very broad or can limit the Power of Attorney to certain acts. What can a Power of Attorney be used for? A Power of Attorney can be used to give another person the right to sell a car, home, or other property…
Read Your Documents Are all the names correct? Have all of your will or trust beneficiaries been listed? Are there terms and provisions you do not understand? Please let us know immediately if your documents are wrong or you don’t understand them. Decide Who Needs Copies of Your Documents It is seldom necessary that the personal representative you named in your Will have a copy of it. After all, a Will has no legal effect at all until your death. However, you may want your personal representative to know where you keep your Will ie safe deposit box,…
Trust funding plays a crucial role in estate planning and asset protection. Here are some key reasons why trust funding is important: Implements your long-term care plan and asset preservation: By properly funding your trust, you ensure that your assets are held within the trust and can be utilized to implement your long-term care plan, protect your assets from potential creditors, and preserve them for the benefit of your beneficiaries. Ensures your plan is executed for maximum protection: Trust funding ensures that your estate plan is executed according to your wishes and provides the best possible protection for both…
Don’t be misled by the misconceptions surrounding Long-Term Care (LTC). It’s crucial to understand the facts and realities of LTC products and services in order to protect yourself, your loved ones, and your future. Here are seven common myths about LTC debunked, empowering you with the knowledge to make informed decisions: Myth 1: “A government program will take care of me.” Fact: While government programs like Medicare, Medicaid, and veteran’s services may provide limited coverage for LTC services, qualifying for these programs is challenging, and they have specific requirements and limitations. Moreover, Medicaid recipients may face estate recovery after passing…
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