Naming someone else to step in and manage your affairs on your behalf is critical if you become incapacitated due to illness or injury. Creating the right financial power of attorney and appointing an individual as a power of attorney agent will ensure that your affairs remain properly managed if something happens to you unexpectedly. Without a power of attorney, you may miss deadlines or not be able to accomplish your financial goals because there is no one to step in on your behalf. Thankfully, the creation of the right document can go a long way towards putting your mind at ease and allowing your chosen agent to step in when needed.
The first of these types of power of attorney is a general financial power of attorney. This becomes effective immediately upon signing and gives broad financial powers to the agent, although it can still be revoked by the principal.
A durable financial power of attorney, on the other hand, can become active either when a specified event occurs or immediately upon signing, and remains effective even if the principal becomes incapacitated. In regard to revocability, it can be revoked, but is effective during any incapacitating event.
A springing financial power of attorney can be revoked only up until a triggering event occurs. The occurrence of this specified event enacts the financial power of attorney, which can only occur under specific circumstances such as the incapacitation of the person who created it.
Finally, a limited financial power of attorney can be revoked, but because it is typically used for a limited purpose or time, it is less likely to be revoked. A limited financial power of attorney becomes effective immediately upon a specified date or signing and gives specific or limited financial powers.
Let our Pasadena estate planning firm lawyers walk you through the creation of your financial power of attorney document today.
