131: Drafting a Comprehensive Power of Attorney: What You Don't Know CAN Hurt You

Absolute Trust Talk

Typically, when we think of estate planning, we only consider planning for after death. But what happens if you become incapacitated? That’s where a Power of Attorney enters the picture. Incapacity planning is a significant component that is just as important, if not more important, than most other aspects of estate planning. Think about it. If you’re in the hospital, you don’t want to wait for your loved ones to go to court to access your funds to pay for care. You want care right away! So, in this episode of Absolute Trust Talk, we’re addressing all the major ups and downs we’ve seen our clients face when navigating Powers of Attorney. Listen in to learn how to avoid the most common mistakes and ensure your Power of Attorney is ready to go if it is ever needed.

Time-stamped Show Notes:

0:00 Introduction

0:55 To start, we’re covering the basics: What is a Power of Attorney?

2:55 There are two types of Power of Attorney – springing and immediate. Here’s what you need to know.

3:40 Did you know that many Power of Attorney agreements include requirements such as getting two doctors to sign off on your incapacity “under penalty of perjury”?

5:35 You can have more than one Power of Attorney, but it’s best only to have one.

8:45 An Institutional Power of Attorney only applies to a specific financial institution for which you sign the papers.

10:11 Next, let’s discuss how to make updates if you have multiple Powers of Attorney and want to change who has access to what.