If you are wondering what to do about major decisions you need to make in the future, but do not think you would be fit or available to make such decisions, the best thing to do in light of this is sign a power of attorney document.
A power of attorney document allows another person authority to make decisions on your affairs on your behalf, if you ever become unable to do so. Power of attorney is also one of the qualified documents you can approve with document attestation in case you and the other person you are giving the authority to are moving to another country.
The person in question is typically a person of your choosing that you ultimately can trust with your life. This can be a spouse, employee, neighbor, or even a company.
Here are some example scenarios in which you would like to have a power of attorney:
- You live alone, do not have any close relatives, but you are to undergo major surgery in a number of weeks.
- You have been diagnosed with an indefinite condition such as cancer or Lou Gehrig’s disease.
- You are going on a trip out of the country but there are matters to attend to at your business in the near future.
- You run a successful company and have no fiscal or medical concerns, but still contemplate if that might change.
It’s true, even if nothing is wrong with you at the moment, you can still create a power of attorney in the event that change happens in your life, so that somebody can still manage your affairs with no indefinite delays.
Here are all the powers you can give in a power of attorney document:
You can allow another person to buy, sell, trade, and accept as a gift a piece of property. The person also will have the authority to pay taxes, collect rents, lease and evict tenants, among other transactions.
You can allow another person to buy, sell, trade, and accept as a gift assets that you own personally or that your business owns. The person will also have the authority to create new investments with current assets.
You can allow another person to make bank transactions with your bank or other financial institution. He or she can open or close bank accounts, retirement plan accounts, brokerage accounts, or other accounts. The person will also have the authority to make withdrawals and deposits, negotiate and endorse checks, and obtain other bank assets such as bank statements and money orders.
You can allow another person to make executive decisions on your behalf. This includes hiring and firing employees, partner with other companies, and even sell or close down the company if necessary.
You can allow another person to buy and manage an insurance policy, including paying for premiums and other fees. You can be a beneficiary of this insurance, but the other person can only be beneficiary under special circumstances.
You can allow another person to pay for medical care, education, hospitality, and advancement of you and your family. This person will also use your money to pay for fooding, clothes, housing, and travel for your family.