New Year’s Resolution Series (Part Two): Financial Power of Attorneys
As we discussed in our previous post, wills are only one part of estate planning. We also provide our clients with peace of mind through other aspects of the process, such as power of attorney documents. Creating a health/durable power of attorney is essential if you want someone to make medical decisions on your behalf. However, what happens to your assets if you’re incapacitated? Maybe you have bills to pay or you own a business, but you’re unable to proceed. Before something like this occurs, you’ll want to partner with an attorney to create a financial POA.
Financial Power of Attorney: Key Questions Answered
What is a Financial POA and Who Can Create One?
Like health/durable POAs, financial POAs are put in place in case you become ill or cannot make financial decisions for yourself. In Maryland, there are two types of financial POAs: Limited POAs and Full POAs. With a Limited POA, only specific powers will be granted to the agent (such as accessing a certain account, for example). A Full POA allows the agent to do everything the principal would be able to do. As with health/durable POAs, adults 18 years and older can create financial POAs. However, the principal must be of sound mind when they sign a financial POA.
What Steps are Involved in Executing a Financial POA?
It’s crucial to partner with a skilled attorney before writing up a financial POA. At Atkinson Law, our lawyers can answer all your questions and guide you through the process. A financial POA must be signed and recognized by the principal. Additionally, it needs to be notarized and witnessed by two individuals. A financial POA can take effect immediately or upon a specific event, such as incapacity. As we mentioned previously, you can always terminate a POA. However, this must be completed in writing and provided to any necessary financial institutions.
Why Should You Include a Financial Power of Attorney in Your New Year’s Resolutions?
It’s important to create a thorough estate plan that covers all the bases. Creating a will is an excellent start, but you also want to prepare for unforeseen circumstances. Most people spend their lives building up assets and saving for the future. You want to ensure that when the time comes, your finances will be taken care of. We have the chance to reflect and reassess our goals every new year. Estate planning, including POAs, can help you feel prepared for anything that comes along. What better way to start 2023 than to cross this important task off your list?
Want to Know More About Financial POAs? Partner with Atkinson Law. We’ll Take Care of You Like Family.
At Atkinson Law, we listen to all our clients and protect their interests so they can receive a positive legal outcome. We’ll work with you and give you the best possible recommendation for your future. To learn more about estate planning and financial POAs, contact us today by calling (410) 882-9595 or visiting our website.