Page 11 - Means Wealth 2020/2021 Perspectives
P. 11


           or the vast majority of people, appointing a financial power of attorney
        F (POA) can be a very morbid and depressing thought. Who wants to think
        about physical or mental incapacitation? The fact is it is extremely important
        to have a financial POA. This instrument is a legal document that allows an
        individual/principal the ability to designate a trusted person to take over
        their finances if they become incapacitated.
        The following are examples of actions that a financial POA may be able to
        take on your behalf:
            –  Access financial accounts to pay certain bills,
            –  File taxes,
                                            Worry is like a rocking chair;
            –  Make investment decisions,

            –  Distribute gifts of money, and  it gives you something to do
                                            but never gets you anywhere.
            –  Recommend a guardian.                  – Erma Bombeck   “

        There are basically four types of POAs:

           1.  General POA — performs almost any act such as opening financial
              accounts and managing personal finances. This instrument is
              terminated if the principal revokes the POA, becomes incapacitated or
              passes away.
           2.  Durable POA — acts on the principal’s behalf and includes a durable
              clause that maintains the POA after the principal becomes incapacitated.
           3.  Limited or Special POA — performs specific duties limited to a certain
              area, like selling a camp, cottage or summer home.
           4.  Springing Durable POA — becomes effective when a specific event
              occurs such as the principal becomes incapacitated.
        You also may want to consider creating an Advance Health Care Directive,
        appointing an agent to make healthcare decisions such as consent to
        giving, withholding or ceasing medical treatments, services or diagnostic
        procedures. This person may or may not be a different individual than the
        one making your financial decisions.

        These can be difficult discussions to have with loved ones. We want to
        think of our loved ones as invincible but, as the saying goes, death and
        taxes are inevitable. n

   6   7   8   9   10   11   12   13   14   15   16