A Durable Power of
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by: ryshep13@gmail.com
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It is important that each adult in the United States have four legal documents. One of these is a "durable power of attorney." The durable power of attorney is just a form agreement used as part of an individual's estate planning.nnThe durable power of attorney allows another person to take over control of the individual's assets and business affairs when the individual becomes incompetent or otherwise unable to manage for him or herself. If you make out a durable power of attorney, you will be known as the "principal" and the one who will take over for you is called the "agent." A general power of attorney doesn't have a "durability clause," like the durable power of attorney has. The durability clause states that the powers of the agent will endure beyond the incompetency of the principal. If you were to be judged incompetent, a general power of attorney would become ineffective. It finally became obvious that a power of attorney is even more important if a principal cannot function. Therefore, congress passed laws that provided for the power of attorney to have validity beyond the incompetency of the principal.nnEverybody talks about the importance of a will or revocable living trust, but they overlook the importance of the durable power of attorney. It is more likely that you will be judged incompetent or unable to manage your affairs in the next month than it is that you will be dead. From a legal standpoint, it is almost harder to have a person declared incompetent and take over their financial life than it is to deal with a dead person's assets.nnUnless there is a durable power of attorney in place, it will be necessary for the court to appoint an agent or "conservator" for someone who has been determined to be incompetent. Each power of attorney should have a clause in it which lays out how the principal will be determined to be incompetent. A properly written durable power of attorney will allow the family to forego any court intervention for the transfer of responsibility to the agent. A principal can usually be declared incompetent, and unable to manage their business or financial transactions, if two doctors sign a statement affirming that the principal is incompetent.n Sometimes a combination of clergy, trusted family members, or medical specialists can be used to verify a principal's incompetency. nn A principal can assure his affairs are properly dealt with, if his durable power of attorney gives the agent appropriate authority. A person acting as agent under a durable power of attorney can help with not only financial and medical issues, but also religious and social matters of concern to the principal. When a durable power of attorney only deals with medical issues, it is called a "medical durable power of attorney." You can have a single document that includes the medical power of attorney, Health Insurance Portability and Accountability Act (HIPAA) agreement, and living will within your durable power of attorney, or you can keep them all as separate documents.nnEvery adult family member should have a durable power of attorney, regardless of the format chosen. You just sign the forms and put them in the filing cabinet. When a crisis develops, the durable power of attorney will play a big part in saving your family money, time and frustration.nnIn the FREE DVD and book, you will learn about the importance of a durable power of attorney for your estate planning.Eliminate estate taxes and get more asset protection by simply ordering Guaranteed Millionaire plus the FREE DVD, Using the Law to Make Money and Protect Your Assets.n
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For more information on the durable power of attorney please visit our website above and get a free 90 minute informational DVD.n
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