The Risks of Not Designating a Power of Attorney
Many adults understand that they should draft a last will and testament. However, your will is not the only important part of your overall estate plan. There are many other legal documents you may want to draft that will protect your best interests. Unlike your will, some of these documents are effective during your lifetime. An important document to consider drafting is a durable power of attorney. While some people do not consider drafting a power of attorney, there are many risks associated with overlooking this legal document. Below, our New Port Richey estate planning lawyer explains what these are.
What is a Power of Attorney?
When you draft a power of attorney, you designate an agent who will act in accordance with your wishes in the event that you cannot make decisions for yourself. The decisions your agent makes can be limited to medical or financial decisions, or you can give them broad authority, depending on the type you draft. A power of attorney can also go into effect when you become incapacitated, or you can designate someone for a specific period of time. For example, if you leave the country, your power of attorney can manage your investment properties for you until you return.
Court is Necessary Without a POA
If you do not designate a POA and at some point become unable to make decisions for yourself or manage your assets, no one will have the legal authority to accomplish these tasks. Your relatives will have to go to court and ask the judge to appoint guardianship over you. The legal costs of guardianship are high and the process is complex. It can also take many weeks, as proceedings depend on the schedule of the court. During that time, your personal property will not be managed, including your home. This can make things much more difficult once guardianship is appointed or you regain capacity.
Increased Potential for Disputes
If there is a dispute during the guardianship process, it will take much longer. When multiple people want to act as guardian, a dispute will likely arise. In most cases, the courts schedule a hearing to hear from all potential guardians before making a decision. In these cases, determining who will act as guardian can take several months.
You Will Not Have a Say
Even if the court appoints a guardian to manage your property, you will not have any say in how they approach it. Generally speaking, guardians have full authority over their ward. By drafting a power of attorney, you can include instructions about how you would like your affairs managed. You can require or disallow your agent to sell your property if it is necessary to cover the cost of medical care, make investments, or obtain advice from financial experts.
Our Estate Planning Lawyer in New Port Richey Can Draft Your POA
It is always important to draft a power of attorney, but you will only have the necessary protection if it is drafted properly. At Messina Law Group, P.A., our New Port Richey estate planning lawyer can execute your power of attorney and other legal documents in accordance with your wishes so they are always upheld. Call us today at (813) 492-7798 or fill out our online form to request a consultation and together the sound advice you need.
Source:
flsenate.gov/laws/statutes/2010/709.08
