A financial power of attorney allows a person you appoint to work on your behalf when it comes to your financial affairs during a time in which you are unable to deal with them. While of a sound mind, you tell your Minnesota estate planning lawyer who to appoint and to then specify what powers this person, or “attorney-in-fact,” is to have. Typically, the attorney-in-fact takes care of banking transactions and transactions dealing with property.
The financial power of attorney is a very important part of your estate plan because it means your finances can be dealt with when you are incapacitated. If there is no power of attorney document to be shown, then the individual you wish to take care of your affairs will need to go to court in order for there to be a conservator put in place to take care of your affairs. This can be both stressful, time consuming and expensive.
Types Of Power Of Attorney
There are different types of power of attorney. Those types are:
General – Very broad in that the attorney-in-fact has total control over finances
Limited – Effective for a specific purpose or for a short period of time
Durable – Remains in place after the person who made the power of attorney is incapacitated
Statutory Short-Form – This is a uniform document that is created by Minnesota Law
It is important to have your power of attorney in place while you are of a sound mind. Due to the fact that power of attorney documents are needed when you are incapacitated, you will not be able to wait until then. Minnesota law does state that the individual has to be competent at the time the power of attorney is drafted.
The attorney-in-fact can be anyone that you can trust. It is important to keep in mind that the person you appoint is someone that is going to act in your place and make financial decisions for you, so it is important to choose carefully.
Once you pass away, the power of attorney terminates and your attorney-in-fact no longer has control over your affairs. At that point, your will determines what happens next.
Contact Eastlund Hutchinson at (952) 894-6400.