One of the critical aspects of your estate plan is having a financial power of attorney set up. This is the individual who will pay your bills and handle other financial matters if you’re unable to do so yourself. There are many factors that you should consider when you’re getting this set up.
By getting the financial power of attorney set now, you can save your loved ones from some stress if you’re incapacitated. They can focus on trying to help you while the person you named handles the bills and similar matters.
Who should you name as a financial power of attorney?
The person you designate as the financial power of attorney should be someone you trust completely. This person will be acting on your behalf for all financial matters. This means that they can pay bills for you, but it also means that they can do other things like selling assets.
In some cases, it’s possible to put limitations on what the person is able to do. You can also stipulate when the power of attorney will become effective. Be sure to discuss your exact wishes with your attorney so they can help you to get things set up in the proper manner.
Remember to review this document, as well as the rest of your estate plan, periodically. This includes instances in which you have major life changes, such as a divorce or the birth of a child. Reviewing your entire estate plan every couple of years even when life changes don’t occur helps to ensure that the plan accurately reflects what you want to happen if you become incapacitated or pass away.