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Financial Power Of Attorney

Our Financial Power of Attorney service ensures your finances are managed according to your wishes, even if you're unable to do so. By granting a trusted individual or entity the authority to handle your affairs, we ensure continuity and security for your assets. Our expert team assists in selecting the right agent and defining their powers to fit your unique needs, providing tailored advice for both daily management and strategic decisions. Built on trust, confidentiality, and legal precision, our service offers peace of mind, knowing your financial affairs are in capable hands, fully compliant with state laws.

Why You Need A Power Of Attorney ?

An Estate Plan without a Power of Attorney for financial matters or a poorly drafted Power of Attorney can cost you thousands of dollars in conservatorship Court proceedings. The standard Power of Attorney may be more dangerous than handing someone a blank check.

A well-conceived Power of Attorney created by Advanced Legal Planning can solve both problems. Advanced Legal Planning has the expertise and experience to make sure your Power of Attorney gives your agent all of the powers he or she will need, while making sure those powers are sufficiently restricted to protect you and your assets.

What Is A Power Of Attorney ?

You can give an “agent” the legal authority to act in your name, to make decisions, and take actions on your behalf. The document granting this authority is called a “Power of Attorney.”

There Are Different Types of Powers of Attorney

There are two classes of Powers of Attorney

Financial Power of Attorney

Power Of Attorney Documents That Are Not For Medical Decisions Are Usually Referred To As “Financial Power Of Attorney.” These Cover All Matters Of Life Other Than Medical Decisions.

Health Care Power Of Attorney

Power Of Attorney Documents That Are Not For Medical Decisions Are Usually Referred To As “Financial Power Of Attorney.” These Cover All Matters Of Life Other Than Medical Decisions.

Financial Powers Of Attorney Important

Think about all of the things that a person often does:

Signing a Check
Using a Debit or Credit Card
Communicating with a Creditor
Communicating with a Service Provider
Going to the Bank
Signing Legal Documents
Retrieving Records
Making Business Decisions
Communicating with Government Agencies
Dealing with a spouse
Communicating with a minor child’s school

You may be the ONLY PERSON AUTHORIZED to do these things. If you do not have someone else legally authorized to do these things on your behalf, any unplanned absence or incapacitation could create havoc in your life and the lives of those you love. If the absence or incapacitation becomes long term, it could necessitate thousands of dollars of expense to get a Court order for Guardianship and Conservatorship.

Is a Power Of Attorney Dangerous?

If you give someone a blank check, that person is authorized to take your money. If you give someone Power of Attorney, that person is likely authorized to do much more. There are three ways attorneys mitigate this risk.

Limit the Powers

Many attorneys supply a list of powers and have a client choose which powers to authorize. This tactic successfully limits risk. However, if one of the powers needed was not authorized, the act of getting the Power of Attorney has been wasted and Court intervention will likely be required. Advanced Legal Planning opts for other risk management techniques.

Choose Someone You Trust

Most clients have family they trust to make financial decisions and family they do not trust. Before choosing any fiduciary (legal helper), it is important to be comfortable that person can be trusted to fill the position competently and with integrity.

Limiting Use of the Powers

Advanced Legal Planning distinguishes itself from many law offices. Our Power of Attorney documents grant all the powers that an agent may need. However, the use of these powers is restricted.

Each Agent is provided an “Agent’s Acknowledgment” prior to receiving power. This process makes sure that the Agent understands he or she

Must act only in your interests
Must make all actions in accordance with your Estate Planning
Must keep records of their actions
Understands any violation will lead to legal liability

An Agent under such restrictions will typically not accept an appointment unless he or she has your best interests at heart.

If You Have A Trust You Still Need A Power Of Attorney

A financial Power of Attorney is included with every Trust-based estate plan created by Advanced Legal Planning.

People who use Trust-based planning transfer most of their assets to a Trust. Those assets are controlled by a Trustee, and no Power of Attorney is needed. However, it is still advisable to have an agent authorized to act outside of the trust for the following reasons:

Limit the Powers

sking a doctor to sign a note saying an unconscious person is incompetent to manage their personal affairs seems simple. However, any time a doctor is asked to make a determination with legal consequences, he or she thinks about liability. The doctor will consult legal counsel. Even when given the green light, doctors still may not be willing to comply.

Need for Speed

When a Power of Attorney is needed, it is usually sudden and unplanned. Someone needs to be able to take over your day-to-day responsibilities quickly. Dealing with a doctor or dealing with Courts delays this process and can harm your health, your estate, and your family.

Help During Planned Absence

Powers of Attorney are often used while a person is competent and simply

Gone on Vacation
Gone off to College
Gone for Business
Gone for Service (i.e. Military, Missionaries, etc.)

If You Can Trust Them Later, Why Not Now?

You should only grant a Power of Attorney to an agent you trust. If the agent is trustworthy when you are helpless, then certainly the agent is trustworthy enough when you are well.

Case #1

Jennifer’s mother, Mildred, had just gone into a nursing facility. Jennifer is now a trustee of her mother’s trust and is caring for all of her mother’s needs. One day, Jennifer called Advanced Legal Planning upset that the investment broker says that Mildred’s IRA is not in the trust, so they won’t talk to her about it. The attorney assures her that everything is okay. IRAs are usually not transferred to a trust because of tax issues. However, the attorney has Jennifer pull out the binder that holds all of her mother’s estate planning documents. The attorney reminds Jennifer that her mother also appointed her as her agent in a “power of attorney” and that Jennifer signed an acceptance of that power some years ago.

Jennifer submits the power of attorney documentation to the investment broker, and now they are willing to work with her on her mother’s IRA.

Case #2

Kaycee’s husband, Bill, works in the oil fields. He is gone a lot, and his supervisor told him that he should do a power of attorney document so his wife can handle anything that comes up while he is gone. To save money, Bill used a ready-made form. It came straight out of Kansas statutes online, so he is sure that it is legal. Bill was injured in a work accident and will need skilled nursing care for the rest of his life.

Kaycee wants to do estate planning for Bill and for herself. She wants to ensure that their children will be taken care of if anything happens to her. The attorney at Advanced Legal Planning tells her that he can help her with “her” planning but needs to see the power of attorney to see if he can help with Bill’s planning.

Unfortunately, Bill did not grant the authority to do his planning for him. Now, Kaycee will have to go through expensive guardianship and conservatorship proceedings just to do their estate planning.

Safeguard your family's future through a tailored Estate Plan Schedule a free consultation with one of our experienced Estate Planning Attorneys

We provide education and counseling to individuals and families so that you can make informed choices with confidence.

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FAQS

What is estate planning, and why is it important?

Estate planning is the process of structuring your assets to ensure they are distributed according to your wishes after your passing or incapacitation. Estate Planning helps you minimize taxes, avoid legal disputes, provide for your loved ones, and maintain control over your financial affairs. Proper Estate Planning can also protect your beneficiaries from creditors and other potential risks.

What documents are typically included in an estate plan?

Key estate planning documents include a will, trusts, a financial power of attorney, a healthcare power of attorney, living will, beneficiary designations, and guardianship designations. Each document serves a specific purpose and can be customized to suit your unique circumstances and goals.

How often should I review and update my estate plan?

It is generally recommended to review and update your estate plan every 3 to 5 years or after significant life events such as marriage, divorce, birth of a child, death of a beneficiary, or substantial changes in your assets or financial situation. Regular reviews ensure that your estate plan remains current and accurately reflects your wishes.

One way to make sure your plan is up to date is to join a maintenance program. A maintenance program assures your plan is being reviewed regularly and gives easy access to an attorney if you have any questions or need any changes.

What happens if I die without a will or estate plan in place?

If you pass away without a will or estate plan, your assets will be distributed according to your state’s “intestacy ” laws, which may not align with your preferences. This can lead to family disputes, increased legal expenses, and increased hardship for your loved ones. It is crucial to have a well-crafted estate plan in place to ensure your wishes are honored.

Can I create my own estate plan, or should I consult with an attorney?

While it is possible to create your own estate plan, working with an experienced estate planning attorney is highly recommended. An attorney can help you navigate complex legal requirements, identify potential issues, and create a customized plan that addresses your unique circumstances and goals. This ensures that your estate plan is effective and legally sound. This provides peace of mind for you and your loved ones.

What is the difference between a revocable trust and an irrevocable trust?

A revocable trust is a flexible legal arrangement that allows you to maintain control over your assets during your lifetime and make changes to the trust as needed. Upon your death, the trust becomes irrevocable, and assets are distributed to your beneficiaries.

An irrevocable trust, on the other hand, is a permanent arrangement that cannot be altered or revoked once established. Irrevocable trusts offer greater asset protection and tax benefits but require you to relinquish control over the assets placed in the trust. An experienced Estate Planning attorney can create “some” flexibility to an irrevocable trust while maintaining its benefits.

How can elder law and Medicaid planning help me and my family?

Elder Law and Medicaid Planning involve navigating the complexities of aging, long-term care, and government assistance programs. By working with an experienced attorney, you can develop a strategy to secure quality care, preserve your assets, and expedite your eligibility for Medicaid benefits. This process can help alleviate financial burdens and provide peace of mind for you and your family.

What is special needs planning, and why is it important?

Special needs planning is the process of creating a comprehensive plan to support a loved one with special needs, ensuring their long-term well-being and financial security. This can involve establishing a special needs trust, selecting appropriate guardians, and identifying government benefits and resources. Proper planning can help your loved one maintain their independence, quality of life, and access to essential support services.

What is the role of a trust administrator, and what are their responsibilities?

A trust administrator, also known as a Trustee, is responsible for managing and distributing trust assets in accordance with the terms of the trust agreement. Their duties may include investing assets, paying taxes, maintaining records, communicating with beneficiaries, and addressing any legal or financial issues that arise. Trust administration requires a thorough understanding of fiduciary responsibilities and trust laws to ensure compliance and protect the interests of the beneficiaries.