A power of attorney document might be an essential item in an estate plan. With proper POA authority, a Florida agent could handle the financial affairs of the grantor. The person granting POA rights needs to be mindful of potential limitations to address them.
The value of power of attorney
Awarding a trusted person with POA capabilities could relieve burdens off the grantor’s shoulders. An older person may have a sizable estate, and handling personal business may become burdensome. Handing over attorney-in-fact powers to an adult child may result in the relative taking care of business, tax and other matters.
Keeping an eye on the agent’s performance is advisable. If mismanagement occurs, revoking POA could be an option.
Even when the agent has the grantor’s best interests in mind, third parties may present minor roadblocks. For example, a bank might not recognize a legally sound POA even though it should. The bank may require a specific power of attorney document to be completed. Drawing up a particular form might not be a problem unless the grantor ends up incapacitated. Comprehensive planning that takes place long in advance of health issues could avoid complicated situations like this.
Other issues of concern with POA
Thorough estate planning might explore various issues associated with any power of attorney designations. A financial power of attorney form doesn’t address health care decisions, for example. Drawing up a health care-oriented POA form may be necessary.
Someone who has dealings outside of Florida might discover a separate POA that fits another state’s rules should be crafted. Of course, the Florida document must be valid in the home state to have value. If someone writes a POA based on an online template, the resulting document might be worthless.
An attorney may advise clients on POA rules and statutes to ensure that their needs are met. The attorney may help their client write POA documents and update them when major life changes occur.
