Estate Planning is more than just “death and taxes,” additional steps should be taken to fully protect you and your estate. For all estate plans prepared by K.M. Khan Law, a client is also provided with two additional documents: a Durable Financial Power of Attorney and a Healthcare Power of Attorney with an Advanced Medical Directive. Although the hope is that these documents will never have to be utilized, they are absolutely necessary to have complete and thorough protection for your estate.
Durable Financial Power of Attorney
The primary reason to have a Durable Financial Power of Attorney (POA) is to avoid the need for a guardianship and conservatorship proceeding, which can be a truly heart-wrenching affair. Your family and loved ones must ask the court to judge you to be mentally insufficient and physically incapable of handling your own affairs; a public hearing for an incredibly private matter. Once this determination has been made, a guardian at litem must be hired or appointed by the court. This person is then paid from the property and proceeds of your estate thereby reducing what may be available for your designated beneficiaries at your passing.
By creating your own POA when you are of sound mind and fully cognizant, you choose the individual you would like to have manage your affairs rather than have the court decide for you. You may also set this person’s compensation, if any is owed, instead of relying on the rates charged by a professional, such as an attorney, or under the fee schedule approved by the court.
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