Any Tampa estate planning lawyer will tell you that every adult should have a durable power of attorney for their finances. They are useful for handling financial transactions and paying bills, as well as making real estate transfers and business dealings. However, a power of attorney is particularly useful if you suffer from health problems that may make it difficult, either now or in the future, to handle your own financial affairs.
What is a Power of Attorney?
People often use the terms “attorney” and “lawyer” interchangeably, but an attorney is technically anyone who acts as a representative for someone else in legal or business matters. A lawyer, on the other hand, is someone who practices law and acts as an attorney for their clients. Long story short: every lawyer is an attorney, but not every attorney is a lawyer.
So, with all that being said, anyone who you choose to handle your financial or real estate affairs for you is considered your attorney, and that person is given the authority to act in this fashion through the power of attorney document.
Why You Should Sign a Power of Attorney
A power of attorney gives you peace of mind that your financial affairs will be taken care of if you are ever unable, or even unwilling, to handle them by yourself. Most people think that a power of attorney, which is usually included with other estate planning documents such as the living will, Last Will and Testament, and revocable living trust, are only for older people. However, we never know what circumstances will arise in life, and having a power of attorney document assures that things will go smoothly if you ever fall ill and need someone else to make sure your bills get paid, your business stays running, and your finances are kept in order.
What Happens If You Don’t Have a Power of Attorney?
Whether you have a power of attorney or not, your financial affairs will still need to be handled. However, if you don’t have a power of attorney and become incapacitated, the court will have to become involved to appoint a conservator or guardian to make financial decisions on your behalf. These court proceedings take time and money, and there’s no guarantee that the person you’d like to make decisions for you is actually appointed as the conservator.
If you have more questions about creating a power of attorney, or if you have an existing power of attorney document and would like to make sure it’s still adequate for your needs, please gives us a call at (813) 438-8503 to set up a consultation so we can review your options with you.