There are many things that you have to think about when you set up your estate plan. Many people know that they need to set a plan for their assets and possibly their health care. They might not think about what’s going to happen with their financial matters if they’re unable to handle those.
You can set up a durable power of attorney for your finances. This document will only empower the person to handle your money matters if you’re incapacitated. Knowing that you have this in place might give you peace of mind. It can also allow your family members to focus on other things if you’re in bad health.
The good thing about setting up the financial power of attorney designation now is that you can set the specifics of what powers you want to give to the person. You can grant specific permissions and bypass others, depending on what you think you’ll need.
As you think about the things your agent will be able to do for you, remember that they must be able to act in your best interests in every decision they make. They can’t do whatever they want. Because of this, you should only appoint someone who you fully trust.
Some of the duties this person may manage include paying your bills, preparing your taxes, handling investments, collecting benefits due to you and obtaining insurance on your behalf. They may also be able to sell or buy assets, including real property, or hire someone to represent you.
It’s best to get this document prepared while you’re in the proper mental state to handle the task. You don’t need to leave your loved ones without a full plan to follow if something happens to you.