This often includes making decisions as to how you are going to spend your money or manage your finances. Unfortunately, accidents do happen and in some cases, certain life situations can render you incapable of making the right decisions. Don’t wait for this to happen. You can protect yourself by creating a durable power of attorney for finances.
What is an FPA?
The durable financial power of attorney or the durable power of attorney for finances is a legal document that you create or make to assign the management of your finances to someone else in the event that you can no longer do so. For example, you suffered a stroke and has been incapacitated or left unable to communicate or make decisions regarding the administration or management of your wealth or finances.
When Will it Take Effect?
In the FPA, you assign someone to act on your behalf in matters that pertain to the management of your finances. Typically, it takes effect the moment you affix your signature. As such it is very important to understand the implications of this particular document. You need to choose someone whom you can trust to manage your finances well.
Are there Types of FPAs?
If you do not specify in your financial power of attorney, the moment you affix your signature it is already in effect and often terminates upon your disability or incapacitation. As such, it is very important to make a durable financial power of attorney so that the document is legally binding even after you are already incapacitated.
It is also possible to make sure that the financial power of attorney will only commence once a doctor has certified that you are already incapacitated. In such cases, the financial power of attorney is known as a springing durable financial power of attorney. For many individuals, this is the best option as it still gives them absolute control over their finances except when they are already incapacitated or unable to do so.
Can an FPA be Ended?
Durable financial power of attorneys automatically ceases upon your death. Similarly, just as you had the capacity to make one, you can also revoke it or the court can invalidate your document. Additionally, if your agent is no longer available then the FPA also ceases to exist.
Managing your finances is something that you alone are entitled to. However, life circumstances are not always fair so it is always a lot better to be prepared.
Distributed by NetJumps International
Company Name: Coleman Law Firm
Contact Person: Jeff Coleman
Address:581 S Duncan Ave.
Country: United States