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Protect Your Power of Attorney’s Power with—Yep, You Got It—An Attorney

07/03/2017

Protect Your Power of Attorney’s Power

An estate plan is far more than just a will. It includes legal documents that protect you while you are alive, if you are not able to make decisions on your own behalf. Everyone over the age of 18 should have medical and financial powers of attorney (POA) documents prepared. It’s not something we like to think about, but having these documents in place can make a difficult situation manageable for loved ones.

Forbes’s recent article, “Don't Let Your Power Of Attorney Become Powerless,” lists some actions to ensure that your documents are effective.

  1. Hire a qualified estate planning attorney like DANIEL T. FLEISCHER. This will mean less expense and headaches for you in the future. Your attorney will be sure that any necessary legislative changes are incorporated into your POAs correctly. Ask your attorney what percentage of his/her practice is estate planning?
  2. Ask your attorney about changes in the law. New laws mean necessary provisions must be incorporated in your POAs to keep them current. Without them, your documents won’t be accepted. For example, your financial POA must disclose certain provisions adopted by the Uniform Power of Attorney Act (UPOAA). The UPOAA was enacted in 2006 to help enforce the acceptance of POAs and to standardize provisions across the country. This is because banks will frequently reject POAs, if they think that in good faith, it may no longer be a valid document. Some authorities (called “hot powers”) will now only be accepted if they are clearly contained into your POA, such as the ability for your POA to amend trust documents, make gifts on your behalf, and designate or change beneficiaries. In Florida, the Durable Power of Attorney statute was updated on October 1, 2011. Durable Power of Attorneys executed prior to then are grandfathered, but financial institutions are nor comfortable with them. This means that older Durable Power of Attorney are not as effective as you would like them to be.
  3. Review your estate planning documents regularly. Once in place, keep your POA current. If they’re out-of-date, they might be rejected when you need them. Review your document when you have a major life event or a change in your situation. Be certain that the people you designate to act on your behalf continue to be in line with your wishes.

Refrain from naming multiple people to act jointly. This requires individuals to coordinate and agree when acting on your behalf. It may result in unnecessary difficulties and delays in decision-making. However, name a backup in case your currently named POA is unable or unwilling to serve. In fact, I know of two major financial institutions that rejected a Durable Power of Attorney because the principal named both of her sons to act.

Don’t let your POAs become powerless. Review them every few years or whenever a major life event occurs, when you should review your estate plan. A qualified estate planning attorney will help ensure that your estate plan aligns with your current goals and that your POAs are still powerful.

Do you live in Miami-Dade, Broward, or Palm Beach counties in Florida? Laws are constantly changing-- has your estate plan been reviewed in the last 2-3 years? Call me (954-888-1747) right away for peace of mind. I can help! Please visit www.411probate.com for valuable information.

  • My practice is exclusively estate planning and probate,
  • I have prepared numerous estate plans in 16 years of practice,
  • I have administered estates and trusts through Probate all over Florida,
  • I am a Certified Financial Planner Professional™, and
  • I am here for YOU today and there for your FAMILY tomorrow.

Reference: Forbes (June 13, 2017) “Don't Let Your Power Of Attorney Become Powerless”

Testimonials
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Why would we recommend D.T.F.? Several Reasons: Your ability to explain complex estate problems, clearly and patiently; your total lack of arrogance and pretense; a strong feeling that you are motivated by what you perceive is best for your client, rather than what would generate the largest legal fees; finally, and importantly, you are a lovely guy. A.C.
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Two words cannot sum up the entire process of creating my “trust.” I enjoyed your attention to detail, your patience of explaining terms and conditions until I understood, also giving me copies to read and understand. Thank you for your suggestions on what was best for “me” but still allowing me to make my choice. Most of all, thank you for thinking of “me.” Wells Fargo said “you were the best” I cannot deny that. Again thank you very much for everything. Anna is an asset or a compliment to the firm. She is warm and very caring. It was great doing business. Thank you.

P.M.