When you own a family business, it is vital to plan for unforeseen circumstances. Often, people don't think of preparing the necessary legal documents in advance. Then, when their loved one becomes stricken by a debilitating sickness (e.g. Alzheimer's or a stroke), they find themselves powerless to make important decisions. The court then becomes in control of appointing an agent to act on the principal's behalf. These decisions could be medical, financial or both. They could also involve having a stranger make decisions about their family business.
Legal papers like a power of attorney, if established ahead of time, can prevent unforeseen problems with your personal possessions, and your business's wealth. They can make certain that your operation continues according to your requests. Here are several important questions and answers to get you started.
What is a power of attorney?
You should have a power of attorney because it appoints a trusted agent to act on your behalf, and make decisions for you if you are debilitated. In doing this, you can make certain that your affairs are taken care of by someone who knows your wishes, instead of a court having to name someone.
Do power of attorneys vary depending on personal circumstances?
There are basically two kinds of powers of attorney, one for individual care, (medical decisions) and one for property (i.e. land, bank accounts, pay bills, and investments) matters. A power of attorney may be totally basic or very specific in what it accomplishes. It may be durable or nondurable. It may take effect right away or only upon the occurrence of a contingency (sometimes referred to as a "springing" power).
Who handles affairs if a power of attorney was not made-up in advance?
Without signing a power of attorney, if you should lose the capacity to make decisions, the court will appoint a public guardian and trustee to handle yor affairs. Getting this authority back in the hands of the people you trust can be expensive and problematic.
If I presently have a living will, is it still necessary to establish a health care power of attorney?
A living will offers guidance for the family when handling affairs, while a power of attorney authorizes them to make their decisions. However, a living will does not take away the need for a health care power of attorney. They usually work hand-in-hand. In fact, lawyers frequently include them in the same papers when they are making a general will.
Is it best to appoint my spouse as my representative?
It is a common practice to give your spouse the power of attorney, but in some cases it is an advantage to appoint another person who you can trust instead. Reason being, if both spouses should become incapacitated (and this does happen), it could create a complicated situation.
You can avoid many potential problems by initiating a power of attorney in advance. This can often be a critical document to create ahead of time. So talk to your professional team as early as possible, and have these papers put in place. By doing this now, it will give you peace of mind knowing that all your "ducks" are in a row for the future.
Legal papers like a power of attorney, if established ahead of time, can prevent unforeseen problems with your personal possessions, and your business's wealth. They can make certain that your operation continues according to your requests. Here are several important questions and answers to get you started.
What is a power of attorney?
You should have a power of attorney because it appoints a trusted agent to act on your behalf, and make decisions for you if you are debilitated. In doing this, you can make certain that your affairs are taken care of by someone who knows your wishes, instead of a court having to name someone.
Do power of attorneys vary depending on personal circumstances?
There are basically two kinds of powers of attorney, one for individual care, (medical decisions) and one for property (i.e. land, bank accounts, pay bills, and investments) matters. A power of attorney may be totally basic or very specific in what it accomplishes. It may be durable or nondurable. It may take effect right away or only upon the occurrence of a contingency (sometimes referred to as a "springing" power).
Who handles affairs if a power of attorney was not made-up in advance?
Without signing a power of attorney, if you should lose the capacity to make decisions, the court will appoint a public guardian and trustee to handle yor affairs. Getting this authority back in the hands of the people you trust can be expensive and problematic.
If I presently have a living will, is it still necessary to establish a health care power of attorney?
A living will offers guidance for the family when handling affairs, while a power of attorney authorizes them to make their decisions. However, a living will does not take away the need for a health care power of attorney. They usually work hand-in-hand. In fact, lawyers frequently include them in the same papers when they are making a general will.
Is it best to appoint my spouse as my representative?
It is a common practice to give your spouse the power of attorney, but in some cases it is an advantage to appoint another person who you can trust instead. Reason being, if both spouses should become incapacitated (and this does happen), it could create a complicated situation.
You can avoid many potential problems by initiating a power of attorney in advance. This can often be a critical document to create ahead of time. So talk to your professional team as early as possible, and have these papers put in place. By doing this now, it will give you peace of mind knowing that all your "ducks" are in a row for the future.
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