William Penn Life, 2017 (52. évfolyam, 1-12. szám)
2017-04-01 / 4. szám
Moneywise with Bob Bisceglia, National Sales Director Power of Attorney WELCOME SPRING! I don't know how the winter was in your neck of the woods, but here at the Home Office in Pittsburgh, we were fortunate to avoid any major weather issues this winter. I'm looking forward to hitting the road again, visiting our agencies across the country and supporting the many street fairs and events that spring and summer bring. In the course of my travels, members and agents often ask about the benefits of having a power of attorney as well as the different types that are available. While we can't give legal advice, I did some research and can provide the following as a general overview of the basics of the power of attorney and the impact it can have on your estate plan. What is “Power of Attorney?” A power of attorney (or POA) is a document that enables an individual to appoint a person or organization to manage their affairs should the individual become unable to do so themselves. According to the National Caregivers Library, a POA is granted to an "attorney-in-fact" or "agent" to give that person legal authority to make decisions for the person granting the power, also known as the "principal." Laws for creating a POA can vary by state, but there are some general similarities regardless of the principal's domicile. Benefits of Having a Power of Attorney for Your Finances You Become Incapacitated Your Pre-Assigned Representative Can Manage Your: \ / Illustration © Can Stock Photo Inc./cteconsultinj; to be aware of. Durable Power of Attorney, for example, relates to all the appointments involved in general, special and healthcare Powers of Attorney - thus, making it more "durable." This means that the document will remain in effect, or take effect, if a person becomes mentally incompetent. Certain powers of attorney may fall within a certain time period as well, so it's best to consult with an attorney to see which might be best for your situation. What is covered under a Power of Attorney? An agent appointed as attorney-in-fact may be able to handle the following, or more, depending on the wording of the POA document: Why is a Power of Attorney needed? Many people believe that their family members (siblings, children, etc.) will be able to automatically step in on their behalf should they become incapacitated and unable to make decisions for themselves. Unfortunately, this is not always the case. If you do not name someone as your agent or attomey-in-fact, your family may not have access to your financial, medical and other important information. In addition, the government may step in and appoint someone to make certain decisions for you if you have not named an agent. Who can benefit from having a Power of Attorney? Just about everyone can benefit from establishing a power of attorney and appointing an attorney-in-fact. Doing so does not mean that you cannot live independently, but it will remove the legal barriers if you would happen to become physically or mentally incapable of managing certain tasks. Oftentimes, these events occur very quickly, making the appointment of the attorney-in-fact very difficult once incapacitated. What are the different types of Power of Attorney? Power of Attorney is a general term that covers various aspects and levels of decision making. The main types of POA include "general powers, healthcare powers, durable powers and special powers of attorney." Many of the responsibilities overlap, but there are some legal differences • Banking transactions • Buying or selling personal or real estate property • Settling claims • Filing tax returns • Managing health or government benefits • Maintaining or running of a business • Making estate planning decisions • Deciding on medical treatments • Fulfilling your health care directives Although a Power of Attorney can be filed and an agent appointed on one's own, we suggest working with an attorney or estate planning team to get a better understanding of your options and the intricacies involved with the various POA documents. Life is full of unexpected twists and turns. Just because the future is unpredictable does not mean that you can't prepare for what lies ahead. Like life insurance, estate planning is important and establishing the correct Power of Attorney can be essential for members looking to protect their financial resources, assets and most importantly, their loved ones. Need help planning or finding the right insurance plan to fit your needs? Many of our agents and brokers work closely with other advisors (CPAs, attorneys, estate planners, etc.), and can help you put the pieces of your financial puzzle together. Call your WPA agent or broker today! Don't have an agent? Call Laurin at 1-800-848-7366, Ext. 120, and we'll have one assigned to you. □ 4 0 April 2017 0 WILLIAM PENN LIFE
