For seniors who are planning on aging alone, choosing a fiduciary to act as your Power of Attorney is a critical decision. A Power of Attorney document allows you to designate someone to act as your fiduciary to handle your financial affairs, during your life. This will be critical if you are ever in a situation where you can no longer manage your own finances. For example, if you are ever sick or injured and you are unable to pay your bills or make financial decisions for yourself, the Power of Attorney will be needed.
Without this document, financial institutions, banks, and the IRS will not release information or authorize anyone to access your account or help you. In this situation your family, friends, or a hospital will need to ask a court to appoint a Conservator for you. The Conservator may not be the person that you would have chosen. It may even be a stranger. The court will require the Conservator to provide annual accountings and reports. You can avoid this by signing a Power of Attorney document and appointing someone to act on your behalf if you cannot.
Be careful who you choose to act as your agent under a Power of Attorney, as the authority to act often goes into effect immediately, not just if you are incapacitated. When considering who to appoint as your agent, you must choose someone that you trust. You will be giving this person the power to handle your money. In the wrong hands, the power of attorney can be used as a "license to steal".
If you do not have anyone who you can trust in this role, you can hire a professional fiduciary. Attorneys and other professionals will often serve in this role. If you are looking for a professional fiduciary, please visit www.SoloAllies.com for a nationwide directory of professionals.
Acting in the role of agent under a Power of Attorney for someone involves a considerable time commitment. Providing your fiduciary with information about your finances will make their job easier. Otherwise, they will need to search for your assets. Your fiduciary will need to go to each bank or financial institution to gain access to each of your accounts. By giving your fiduciary information about your finances, you will make their job easier and avoid having them go on a wild goose chase looking for your assets.
An estate planning attorney or elder law attorney should draft the Power of Attorney document. Although, you may find samples of this document online or at a store, there are numerous issues and consequences that should be reviewed before you sign this document. Without a comprehensive Power of Attorney document, you may not be protected, if and when it is needed. For example, if poorly drafted the document may not include important powers to protect your interest in a crisis. It is important to note that Power of Attorney is only useful during your life. All power to act under the Power of Attorney ends upon death.
Life is uncertain and you never know when you may need this critical document. If you would like to find a professional fiduciary near you, or an elder law attorney to help you create the Power of Attorney, please visit www.soloallies.com for a directory of professionals near you.