Do You Need A Power of Attorney? Here is All You Need to Know!
It's never too early to start thinking about your estate planning. Your future is not promised to you and, anything can happen in the next very second. Therefore, it's a clever step to pre-plan your estate planning. What's the first thing that comes to your mind when you think of the paramount document of your estate plan? You probably come with an idea of your will or testament. But, do you know the fact that a well-drafted financial power of attorney can be the most important document of your estate plan? Probably not, as this concept isn't popular enough among the people. In today's article, we will discuss a power of attorney and why it is a significant factor for your estate planning. Before we dive deeper into that main topic, let us know the few basics of power of attorney. Just read on!
What Is Power of Attorney?
Power of attorney is legal documentation in which a person grants rights to the other person to help him manage the financial, medical, and estate planning. The person who allows this responsibility is called the principal, while the individual working under legal documents for the principal is called an agent. The agent that you hire must be trustworthy or hired after having enough details and research about him.
What Is the Durable Power of Attorney?
The simple power of attorney is only eligible until the principal is mentally stable. The day he starts losing his consciousness, the eligibility expires. Therefore, hiring an agent for durable power of attorney is a more efficient way. This is because its eligibility won’t retire even after the principal loses his consciousness. Although, hiring an agent under the durable power of attorney is a more complicated and expensive task as it requires an extreme level of trust in someone. Transferring the responsibility of power of attorney as your estate plan to your spouse or your heirs for this purpose is the best option.
Why is Power of Attorney Important?
The paramount of having power of attorney is when the principal gets incapacitated. If a person has a well-drafted power of attorney, his agent will immediately start managing his financial, medical, and estate planning problems. It won’t require the interference of the court. But, if the person doesn’t have a well-drafted power of attorney be losing his consciousness, he has to go through the cumbersome system. It is an unnecessary process in which they provide guardianship for your property. Despite that, the guardian has to wait for court permission before taking any step. This process is also very time-consuming. Therefore, hiring an agent for durable power of attorney is always a clever move.
Do You Need Power of Attorney?
As we have already mentioned its importance before, the requirement of power of attorney feels pretty necessary. No one is 100% about being mentally and physically stable in the upcoming future. You can't even predict anything accurately. For example, the strike of the coronavirus made several people unable to work properly due to strict lockdowns. Having power of attorney will help you manage your financial, estate planning, and medical issues more efficiently. It will also save you the cost of going through a cumbersome system and minimize your future complications. You can consult an agent according to your circumstance.
After reading the whole article, now you have all the basics about power of attorney. We’d recommend that you require power of attorney for a risk-free future. It is as important as your insurance. Both of them secure you a carefree future. But, before hiring an agent, you should research its policies according to your country. It is because the requirement of hiring an agent varies from country to country. Selecting a fiduciary, like a guardian, can be a time-consuming job and requires a lot of research. But it will pay off to you in the future.
Although we have mentioned all the basics of power of attorney in our article, if you still have any questions regarding this topic, drop them in the comment section below! We are here for you.