Life Choices

FINANCIAL CONSIDERATIONS

Life Choices: Page 17 of 36 pdf order

Financial considerations: Power of attorney & durable power of attorney

Power of attorney

If it becomes difficult for you to take care of your personal business because of an illness or injury, you may want to consider giving someone your power of attorney. This means you give someone written authority to act in your name with regard to your financial and business affairs. This is usually a friend or a relative, not a lawyer. The person is called your "attorney in fact."

A power of attorney needs to be in writing and should state your name and the name of the person who will be your attorney in fact. It should list the specific powers you are giving to the attorney in fact. Typically, attorneys in fact handle financial affairs such as cashing and depositing checks, paying bills and buying groceries. Be careful about who you choose, because this person will have an important role in your life.

Durable power of attorney

A power of attorney, like the one described above, becomes invalid if you become incompetent to make decisions or when you die. If you wish for your attorney in fact to continue managing your affairs after you become incapacitated you should consider a durable power of attorney. The document should be titled "durable power of attorney" and should state that the power you are giving your attorney in fact is "durable" and will continue if you become disabled or incapacitated. Sign and date the document and have it notarized. If you want to include real estate matters, you will need to file the document with your local recorder of deeds.

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