Nevada residents who become mentally incapable of managing their affairs could face some serious difficulties if there is not a valid power of attorney in place. Although this issue might seem like an end-of-life matter, the reality is that people of all ages can be mentally affected by accidents or illness.
There are different power of attorney options based on one’s financial and estate goals. For example, a durable power of attorney becomes effective as soon as it is legally executed. The principal is the individual conferring power of attorney responsibilities to an agent, and the principal has the ability to revoke this document at any point. A springing power of attorney does not become effective until a qualifying event occurs. Because health issues are common triggers for springing powers of attorney, there could be delays in the activation of this type of plan.
Becoming educated about the power of attorney options is important because of the type of control being conferred to another individual. Experts note that springing documents are often selected because of a lack of confidence in agents. However, a lack of confidence should serve as a red flag for the principal. Ideally, the individual appointed to carry out a principle’s financial affairs should have a similar understanding and commitment to the goals and values of the party being assisted.
A power of attorney is just one component of a sound estate plan. It is wise to plan ahead to ensure that important details are in place in case of an emergency.