subject: How A Power of Attorney Should Manage One's Monetary Matters [print this page] How A Power of Attorney Should Manage One's Monetary Matters
The power of attorney is sought after by many people owing to its use to appoint a person to make decisions just for you. In case you become ill or if you go out of the country and there are important tasks or transactions to be done, you could be certain someone will appropriately take over to ensure everything happens as it should. In the event that you are thinking about obtaining a power of attorney, you ought to make sure you are choosing the right agent or attorney-in-fact ( the individual who would be provided authority to execute decisions for you).
One standard topic of dicussion about power of attorney and appointment of agents is the way the person manages money. In the power of attorney, particularly for the 'durable' one, that same agent is given the full authority to look after and handle all your cash and assets in case you get mentally incapacitated. That is why many people choose to appoint their wives or family members as agents. But there are still issues and conflicts coming up in such situations.
How could you make sure your agent will be using the authority properly? Firstly, you should choose an individual who you've already shown to be reputable and that can be relied upon. He/She should be very highly ethical so as not to cheat you or embezzle funds from you. Secondly, that person ought to have the capability to prudently and effectively manage monetary things. If not, he or she ought to be humble and wise enough to seek aid from experts and experts to ensure your funds are well managed.
To be able to handle and manage your money better, your agent must invariably decide to sustain his/her own money separate from yours. Therefore, there would be no confusion. The agent must not be personally involved in any transaction where he or she is representing your interests. As an example, he/she must not be a regular investor who would get more from purchasing your shares in a business in an improper manner or pricing. The agent should be firm in keeping accurate all records pertaining to all transactions he/she enters just for you.
You could have the option not to include specifications or directions that would give your agent the permission to transfer to himself/herself any of your property or bank account. The law usually allows the agent to transfer your assets to your partner (if your agent is not your better half). Even so, the law does not allow him/her to transfer any of your properties to any other businesses, even your children.
Always seek the assistance and guidance of your private attorney when producing or drafting the content and provisions of your power of attorney. It is more advised that you do so particularly when the document would involve your properties, savings, and income. You could still safeguard your assets although you get into a power of attorney. That is if you maybe more wise and prudent in making decisions.
