A will and durable power of attorney are powerful legal instruments that can protect you and your loved ones from harm and create a sense of security. A durable power of attorney for financial affairs can be confused with a will. Many individuals believe that they immediately have the attorney’s power if they have a will.
As a result, we have offered a straightforward explanation of whether you require a lasting power of attorney in addition to your will. For more comprehensive elderly law services, ask an expert serving Naples, Florida.
What’s In Your Will?
In this instance, your will is the polar opposite of a power of attorney; in this instance, we examine the lasting power of attorney.
When you die, you must safeguard your beneficiaries’ interests. The documents empower you to determine who will inherit your property and designate you as the testator, a person who selects heirs and the percentages they will receive upon death. Additionally, you name an executor who will fulfill your desires by dispersing your assets according to your wishes.
By contrast, a durable power of attorney acts in your best interests while still alive. And it loses authority only when you die. Then your will takes precedence. This indicates that they do not overlap.
You delegate decision-making authority to another individual who will operate in your best interest by executing a durable power of attorney. They may pertain to your financial, legal, or business choices. For instance, your attorney can assist you with house maintenance, bill payment, business management, and the sale of your home, among other things.
What Is Lasting Power Of Attorney?
As previously stated, a durable power of attorney (a legal document) enables the principal (you) to appoint another party (an agent or attorney-in-fact) to act on their behalf.
The form of a power of attorney varies by state. Additionally, the document’s validity requires that it be signed and notarized.
If you choose this option, you can choose your preferred individual, and there should be no delay between the time you appoint them and the time they begin managing your affairs. Your agent may make broader or more specific decisions as directed by the document. Additionally, the agent may be referred to as a “power of attorney.” You should choose someone you trust because they will act on your behalf, fight for you, and make decisions on your behalf while you are still alive.
Reasons For Choosing LPA
Principals who are unable or unwilling to make their own decisions are pushed into this dilemma. A power of attorney may be the best solution for you if any of the following apply:
- If you are hospitalized and require assistance with paying expenses, this is a temporary condition.
- Individuals who have dementia, for example, may lack the mental capacity to create appropriate long-term goals.
What Does ‘mental Capacity’ Imply?
In this context, mental capacity is defined as the ability to express oneself or make a decision when the situation calls for it. Therefore, the decision and its impact on your life must be thoroughly understood.
In some cases, making a decision is more straightforward for some people than others. On the other hand, making dinner plans may be more difficult for you than figuring out how to get your house insured. In addition, your ability to make decisions can vary from day today.
You need more time and space to make decisions doesn’t necessarily mean that your mental capacity is weak. An illness such as dementia does not automatically imply that you are incapable of making independent decisions. Individuals should make an effort to assist those who have difficulty communicating and making decisions when they are able.
Types Of Lasting Power Of Attorney
A lasting power of attorney exists in two forms, and you can establish more than one. These include health and welfare LPA, property, and financial affairs.
Health And Welfare LPA
Health and welfare attorneys have the power to make decisions on your daily routines (washing, dressing, etc.), your medical care, moving to a care home, and life-sustaining treatment. Health and Welfare LPA is used if you are incapable of making your own decisions.
Property And Financial Affairs LPA
Among the many responsibilities of a property and financial affairs attorney are making decisions about your money and assets, such as paying your bills, selling your house, collecting your pension or other benefits, and managing your bank account. This LPA can take effect as soon as registered with your permission.
You can limit your attorney’s authority over your assets to cover only specific assets. As an example, your house, but not your bank account.
