I’ve Got the Power, of Attorney!

Okay, okay, you got me. I apologize for my 80s T.V. reference, but I thought it was rather fitting, as sometimes attorneys can (and do) seem like superheroes. That said, the term Power of Attorney doesn’t necessarily mean that the person you have chosen to trust with your affairs is going to dress up in spandex and spend their nights fighting crime in your name. Although you do have to admit it’d be pretty awesome if they did!

What is a Power of Attorney?

Power of attorney isn’t actually referring to a person at all! Rather, it is a written document that says you have given permission to another adult to tell other people what to do with all of your things since you are unable to do it yourself. This includes things like real property (i.e. land) or even bank accounts, as well as handling all the rest of your financial or legal matters.

It also doesn’t necessarily mean you have to be dead. Generally, it is used when someone is incapacitated by some physical or mental reason and can’t speak for themselves, or do all the things that need to be done. So, in review, the power of attorney allows your spouse, a friend, or a family member (also known as an agent), to act on behalf of you (also known as the principal).

Types of Power of Attorneys

So, okay, power of attorney! That’s fantastic! But you might be confused. You might be asking yourself, “Hey, is there more than one kind of power?” And the answer to that question is indeed a resounding YES! There are in fact two types of power of attorney, and we’ll look at them now.

Limited Power of Attorney

Limited: With limited power of attorney, that means that a person has the authority to do one thing and one thing only (like selling your house, for example). If you can’t do it yourself, you’d definitely want to have someone you can trust help you. If that’s the case, then the “Limited” option is probably the best choice for you.

General Power of Attorney

General: According to Justin Scott, a New Jersey attorney, “The general power of attorney allows the representative assigned by the principal the ability and authority to act in any way necessary on anything and everything, should the principal become mentally incompetent or otherwise disabled.” It’s important to note that these general powers of attorney usually have a provision that will allow the representative (or agent) to act even in the event that the principal becomes disabled. However, it automatically ends when the principal person dies.

So now you know a little bit more about power of attorney—who it is and what it does. Hopefully now, if you weren’t before, you will be able to feel at least a little more confident when it comes to matters like these. I know I am, and I hope that you are too!

Trusts, and the Probate Process

It is likely that you’ve heard of a trust. In case you’re unsure what it is, though, a trust is simply this: A trust is an arrangement where things like property, money, etc. are held in safekeeping. What kind of trust should you set up if you’re thinking about it? In this article, we’ll answer that question! Let’s take a look.

Why Do I Need A Trust?

Trusts created under a will can be set up for just about anyone: minor children, adults, or any other person whom you have designated as a beneficiary. It can also be done for a multitude of reasons like tax savings, giving the beneficiary the ability to handle finances or if you have a particular way you would like to distribute all of your assets.

Why Do I Need A Trust?

A trust that is created under a paragraph in your will serves to appoint a trustee. The appointed person then both administers and invests the funds for the trust, and they also pay income and/or principal from the trust following the terms and guidelines that are named in the will.

Attorney Justin Scott sheds more light on the matter. “It can be nerve-wracking to try and think of if you’ve covered all your bases when planning for the future. It’s no question that something will inevitably get left out or you’ll forget this or that. And while you can most certainly create a will on your own, it can still be a bit confusing. If you’d like assistance with drawing up a will or living trust, or if you have questions about anything else, my team and I would be happy to assist you, and get you the help you need.”

Contact Scott Counsel to Learn More About Wills and Trusts

So as you can see, there are a couple of very good reasons to have a will and trust. Of course, this may not be everything involved in the process; it wasn’t meant to be. Rather it is a basic overview of the steps, in order that you may have a general idea of what to expect if you’re thinking of setting up a will and trust for your loved ones. As Mr. Scott said, it can be difficult to know whether you’ve covered all your bases. And while it’s true that you may not get them all, at least by having both, you can rest easy knowing you’ve covered most of them. And most of them are better than none.