Using a durable financial power of attorney in estate planning

A financial durable power of attorney could be an important part of an estate plan for some people in Nevada. This allows someone to manage a person’s finances if that person becomes incapacitated. Unlike a regular financial power of attorney, it will not become invalid when a person becomes incapacitated.

If there is no durable power of attorney, a family may have to go through a court process to have someone appointed guardian to deal with a person’s financial affairs. In addition to the expense and time associated with this process, it might also end up being someone the person would not have chosen. A springing power of attorney is another option. It goes into effect when the person becomes incapacitated. However, the disadvantage with a springing power of attorney is that it may be necessary to get a physician to confirm incapacity, which could mean delays.

Powers of attorney may specifically outline the financial powers they are granting. These could include the ability to deal with a person’s bank accounts, investments and safe deposit boxes. The individual appointed might also be permitted to sign tax documents or file a lawsuit against someone. Creating a financial durable power of attorney can be a complex process, and people may want to work with an attorney to integrate it into the overall estate plan.

An attorney may also be able to assist with other parts of the estate plan. For example, some people who assume they will create a will might want to use a trust as the main estate planning document instead. This might be useful for a person who wants to support a family member with special needs, manage how distributions are made to an irresponsible heir or ensure that everyone in a blended family receives some assets.

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