There are several things that you have to think about when you’re creating your estate plan. While it’s easy to focus on the assets that you have to get to your loved ones, there are other aspects of estate planning that you need to think about.
One of the important things that you need to do when you’re creating an estate plan is to protect the estate that you’re handing down to your loved ones. You can start this before you pass away by setting the financial power of attorney.
What are the duties of the financial power of attorney?
The person you name as financial power of attorney has a duty to handle everything related to your money if you become incapacitated. They’ll pay your bills and handle investments. They can do everything you’d normally do when it comes to your finances.
Their ability to do this goes into effect if you can’t handle your own affairs. The person can remain in charge of your finances until you become competent enough to do it on your own or until you pass away. When you pass away, the duty to care for your finances transitions to your estate administrator.
The person you choose to name as financial power of attorney must be reliable and financially savvy. They should understand your wishes and be willing to do those without putting their own wishes into their decisions. Once you decide on the person you want to name, you have to get the document drawn up. This is part of your estate plan, so be sure you work with someone who can assist you with getting everything together.
