Financial and health care powers of attorney are essential estate planning documents in Huntersville.
Estate plans may vary in many ways based on the needs of the clients. However, the basic estate plan or will package, as termed at NorthPointe Law Group, includes powers of attorney, both financial and healthcare, for residents of Huntersville, North Carolina.
Financial Powers of Attorney
A financial power of attorney is a key estate planning tool. It is a crucial piece of the estate plan as what is termed a “life document”. Life documents are documents that may ONLY be used during one’s lifetime and may be used frequently based on need. A consistent characteristic found in life documents is the consideration of incapacity.
Financial powers of attorney come in several formats. One is the durable power of attorney. This instrument gives the identified person the ability to assist the grantor in numerous financial conditions, as selected by the grantor without regard to incapacity. This type of financial power of attorney is good for immediate use in situations where one may travel frequently or routinely need help, such as an elderly parent living with an adult child. However, caution should be given as to when this type of broad use is offered.
Another form of the financial power of attorney is a springing power of attorney. This is created for use at a future time; specifically, this is conditioned upon incapacity. The nice feature of this instrument it that it is only used when really needed and may be considered a way to limit abuse.
By far, the financial power of attorney could be one of the most important estate documents. Not only may it be used multiple times, but the implications of not having such as statement may require court action if a person becomes incompetent. Specifically, a guardianship action may be required to appoint a person to address financial transactions of the incompetent. This involves delays, court fees and a bond to be paid by the appointed guardian to protect the interest of the incompetent.
This is a document often overlooked by young adults. As they become adults, they consider newfound “freedom” without considering who would make decisions for them if they were unable because of a situation such as incapacity.
Health Care Powers of Attorney
Health care powers of attorney are a strong tool to use in stating who can make medical decisions on behalf of an individual. These documents are invaluable in notifying and clarifying to medical professional who is to make tough medical decisions when a patient is unable to make his/her own decisions due to incapacity. The health care power of attorney and the living will are important documents for medical facilities to avoid conflicting positions of family members.