Our estate planning lawyer knows that when you create a power of attorney, you want to make sure you are covering all of your bases and are not leaving anything to chance, something that is helped by having different types of powers of attorney. Many residents in East Greenwich, RI have spoken with us about creating powers of attorney so that they will not have to worry about the decisions made surrounding the end of their life. This can be a difficult task to complete because, frankly, it is not a subject many people want to think about. However, if you are ready to take that step and would like to work with us to create your power of attorney document, please give McCarthy Law, LLC a call now.
When you are ready to write down your wishes, it is important to understand the differences between the powers of attorney East Greenwich, RI residents choose from.
- The limited power of attorney. With the limited power of attorney, you are giving someone a limited amount of authority to do a very specific task. This is often the case when a person is purchasing property but they are not in the state they are purchasing in. They can execute a limited power of attorney and allow a person who resides in the state to finish the purchase on their behalf. Once this is complete, the power of attorney is gone for good.
- The durable power of attorney. The person in East Greenwich, Rhode Island who is given the title of durable power of attorney has the authority to pay off debts and make healthcare decisions on behalf of the person giving the power. This can be revoked if the person who created the power of attorney chooses to do so. It can also allow the person with a durable power of attorney to make decisions if the person who gave the power is incapacitated in some way.
- The springing power of attorney. Not all states have the same types of power of attorney and the springing power of attorney is accepted in East Greenwich, RI. This is similar to the durable power of attorney but it takes effect at a designated time. So, if the person authorizing the power of attorney says that they want this to vest if they have been in a terrible car accident and they can no longer speak for themselves, then the springing power of attorney will only be active when all necessary circumstances occur.
A power of attorney is one of the most impactful documents you can have within an estate plan. However, there are mistakes people may unintentionally make that can risk it becoming ineffective. A powers of attorney East Greenwich, RI families trust from McCarthy Law, LLC knows how to watch out for potential errors and issues, so that your power of attorney is legally-binding and serves the purpose it was meant to. Here are a few common issues that our legal team can protect you from accidentally committing:
Establishing a Limited Power of Attorney
A frequent mistake when establishing a power of attorney is making it too limited in what your appointee can do for you. You may assume that you just need someone to help pay bills or other financial tasks, but what would happen if you were to become incapacitated? You may need nursing home assistance or other medical support, and funds to pay for that care. If the person you chose as power of attorney cannot help in all matters if the unexpected happened, then it will be difficult to get things settled. As our East Greenwich powers of attorney team can review with you, your power of attorney document should cover:
- Taxes
- Business dealings
- Investments
- Real estate property
- Digital property
- Financial accounts
- Tangible personal property
Not Utilizing a Power of Attorney
While this may seem obvious, there are many people who create a power of attorney document, but then put it somewhere that’s hard to find and don’t tell anyone about it. As your attorney would suggest, you may want to talk with your chosen power of attorney to make sure they are okay with this role and also that they know where to find this document if the time comes. To go through the effort of establishing a power of attorney, but then never being used because no one knew about it, means that you risk choices being made that you would not have wanted.
Having Loved One on Joint Account
You may think that adding a close loved one to your bank accounts, as a way to avoid creating a power of attorney, may be an easier option. This person will have access to your accounts, can pay bills, and make other transactions as required. But as our East Greenwich attorney powers of financial and health documents team may discuss, the problem with this strategy is that after you assign that loved one as joint owner on your account, that financial account essentially becomes their property. This means the account is vulnerable to creditors, and your account will become part of their estate if they were to die before you. Taking the time to develop a thorough and thoughtful power of attorney document is the ideal way to smoothly let another person handle your affairs.
Our team is available to answer questions and guide you through the process of establishing estate planning documents and who to appoint as your power of attorney. Do you want to learn more about powers of attorney? Contact McCarthy Law, LLC to speak with our East Greenwich, RI office now.