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Power of Attorney: Part 2 => What You Need to Know

November 18, 2016

power of attorney

I recently explained the basic “What” and “Why” to provide a basic understanding of the Power of Attorney document and why it’s extremely important for every family.

I also shared a story about Joe and Doreen, a married couple without a Power of Attorney, to demonstrate how and why a POA can come into play (and how it can critically affect families).

Basic Powers Granted in a Power of Attorney

With this example in mind, let’s examine the basic powers that your agent receives when a Power of Attorney has been signed.  The illustration below lists the various powers that are available to be assigned your agent:

power of attorney

Most individuals are asked to initial Item ‘P’ which grants their agent the authority to use all of the powers that are listed.  Prior to initialing Item ‘P’, you should fully understand what each of these items entails. Although some of the powers are relatively self-explanatory (i.e. real estate transactions, banking transactions, etc.), categories like “chattel and goods transactions,” “tax matters” and “all other matters” should be explained in detail by the attorney draftsperson of the document.  

While this list is non-exhaustive, here is a quick explanation of each category.  Please keep in mind that this list is not all inclusive and your attorney draftsperson should always explain these categories in further detail prior to the signing of the document:

In the third and final part of this blog series, I’ll examine important modifications your attorney should make to your Power of Attorney to ensure all your bases are covered should you or a loved one require skilled nursing care.

But you don’t have to wait for Part 3 to get started on your Power of Attorney. Give me a call with any questions or to get started on your document.

Related Topics: Estate Planning

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