A power of attorney is an authority given to another person to act on behalf of an individual usually called a principal. The agreement is made into a legal document guiding the relationship between the attorney and the principal. There are four types namely: general power of attorney; durable power of attorney; special or limited power of attorney; and springing durable power of attorney.
There are many situations in which given out this authority may be advisable and necessary, for example, this power might be given out about property management and financial affairs, it may be given when one needs to collect benefits or when one desires to sell a home. In these situations, authority can be given to another person to sign a contract on behalf of a principal. There are some decisions in which this power can be delegated to another such as making health care decision.
Before this authority can be given to another, the principal must make sure that he understands the information contained in the document and that it conforms to that state’s requirements. He must be able to evaluate the information in the document and must be mentally fit to do such. Also, the principal must be able to communicate his intents clearly and effectively. To obtain the power of attorney is easy if some precise steps are taken. One of such steps is checking the state's requirements to make sure one is on the right track. One needs to fill relevant forms and makes sure that the document is clear enough for all signatories.
The preceding paragraph must deal with the legal capacities of the principal. This is the ability of a person to arrive at decisions that are legally valid. This ability will guarantee his fitness to enter into a binding contractual agreement with other people. It also consists of the ability to choose who he will give the authority to. Legal capacity will enable the principal to make his intents clear to avoid misrepresentation.
This power can be revoked when the principal decides to do so. However, the process of revocation must be made explicit to all parties involved. The most important step in this process is to be sure of state's requirements so as not to contravene laid down rules and regulations governing such procedure. All institutions involved in this process of revocation must be duly informed for necessary actions. In case of legal capacity issues such as when the principal becomes incapacitated or when he can no longer make decisions for himself because of mental depreciation or disability the family members can approach the court for revocation of the power of attorney. Also, this power can be revoked when one is no longer satisfied with the services being rendered by the attorney. It can also be revoked when there is a case of exploitation and abuse on the part of the attorney. Revocation can also occur when the attorney misuse his power.
Learn more about attorney Sean J. Nichols and the legal services he provides for clients including: estate planning, elder law issues, Medicaid planning, elder care, probate law, guardianships, and power of attorney (POA) at www.seanjnichols.com. To contact the offices of Sean J Nichols, call 734.386.0224 today.
Monday, August 27, 2018
Friday, August 10, 2018
How is My Debt Dealt with When I Pass Away?
We are all eventually going to pass away at some point in time. While we would all love to avoid it for as long as possible, we should be prepared for it in more ways than one. The first thing that you are going to want to do is create an estate plan and establish a will that lists who oversees your estate. This is the person that you trust the most to follow your wishes after you pass away and is essential during the estate planning process.
When the time comes, your executor, the person you put in charge of your final wishes, will take care of your estate. They will use any money that you had left to pay off your debts and if there is any debt left, they can also sell your property or other items to cover it all. That is all completed before heirs receive the money that you left to them, so there is a chance that they may not receive anything, depending on how much debt you had.
If you do not have enough money to pay off all your debts, your spouse or co-signers on the loans are going to be responsible for paying that debt off. This can include your mortgage and home equity loans, plus credit cards. If your executor does not pay off your car loan, your vehicle can be repossessed. Debt collectors are going to do all that they can to collect on your debts, but legally they are not supposed to lie or mislead a person into thinking that they are responsible for repaying that debt.
If you are currently in debt and want to ensure that your heirs receive some money from you when you die, you will want to purchase a term life insurance policy. The money from those policies are protected from creditors but can be used by a spouse or another person who is responsible for paying off your debts once you pass away. It is important to keep your beneficiaries up to date on your life insurance policies though, because if they are no longer living, the money will automatically go into your estate to be used to pay off your debts.
Oftentimes, creditors cannot take any money from your retirement accounts either, which means that the beneficiaries that you have on those will receive that money as well. Depending on how old they are, they may be able to start withdrawing that money to live or they can keep it as a retirement plan to use when they get of retirement age.
The last thing that your family needs is to be hassled by creditors when you pass away, but if you take the proper precautions ahead of time by creating an estate plan, the entire process will be quite simple for everyone.
Learn more about attorney Sean J. Nichols and the legal services he provides for clients including: estate planning, elder law issues, Medicaid planning, elder care, probate law, guardianships, and power of attorney (POA) at www.seanjnichols.com. To contact the offices of Sean J Nichols, call 734.386.0224 today.
When the time comes, your executor, the person you put in charge of your final wishes, will take care of your estate. They will use any money that you had left to pay off your debts and if there is any debt left, they can also sell your property or other items to cover it all. That is all completed before heirs receive the money that you left to them, so there is a chance that they may not receive anything, depending on how much debt you had.
If you do not have enough money to pay off all your debts, your spouse or co-signers on the loans are going to be responsible for paying that debt off. This can include your mortgage and home equity loans, plus credit cards. If your executor does not pay off your car loan, your vehicle can be repossessed. Debt collectors are going to do all that they can to collect on your debts, but legally they are not supposed to lie or mislead a person into thinking that they are responsible for repaying that debt.
If you are currently in debt and want to ensure that your heirs receive some money from you when you die, you will want to purchase a term life insurance policy. The money from those policies are protected from creditors but can be used by a spouse or another person who is responsible for paying off your debts once you pass away. It is important to keep your beneficiaries up to date on your life insurance policies though, because if they are no longer living, the money will automatically go into your estate to be used to pay off your debts.
Oftentimes, creditors cannot take any money from your retirement accounts either, which means that the beneficiaries that you have on those will receive that money as well. Depending on how old they are, they may be able to start withdrawing that money to live or they can keep it as a retirement plan to use when they get of retirement age.
The last thing that your family needs is to be hassled by creditors when you pass away, but if you take the proper precautions ahead of time by creating an estate plan, the entire process will be quite simple for everyone.
Learn more about attorney Sean J. Nichols and the legal services he provides for clients including: estate planning, elder law issues, Medicaid planning, elder care, probate law, guardianships, and power of attorney (POA) at www.seanjnichols.com. To contact the offices of Sean J Nichols, call 734.386.0224 today.
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