Kirtland & Seal, L.L.C.

Financial power of attorney is a smart addition to an estate plan

On Behalf of | Apr 9, 2022 | Estate Planning

While the future is unpredictable, there are certain steps one can take that will allow him or her to have a measure of control over certain matters long-term. Through estate planning, you can decide what will happen to your money, property and much more after your passing or in case of your incapacitation. A thorough estate plan can provide you with peace of mind for the future, allowing you to have the final say over your property and health care. 

Every estate plan is different, but many in Colorado start the estate planning process by drafting a will. This is a document that outlines how one will want to distribute assets after passing, and it is also possible to use this document as a way to name someone to act as a guardian for minor children. While a will is a good place to start, there are other estate planning tools that may provide benefits to you, such as a financial power of attorney. 

Can a financial power of attorney benefit you? 

A financial power of attorney is an estate planning tool that provides you a way to have a measure of control over certain financial matters in case you are ever in a position in which you cannot speak for yourself. This would be in the event of a disability, medical emergency or severe illness. In this document, you will name a person to act on your behalf, specifically making important financial decisions for you. Some the responsibilities one may have to perform as your financial agent include: 

  • Paying bills for you 
  • Paying your medical expenses 
  • Paying taxes for you 
  • Operating your business for you 
  • Transferring or selling your assets on your behalf 
  • Investing on your behalf 
  • Collecting your retirement benefits 
  • Accessing your financial accounts  
  • Managing real estate assets for you 
  • Buying insurance for you 

The ideal estate planning tools for you 

Through the implementation of certain estate planning tools and thoughtful construction of certain documents, you can create an estate plan that will provide you with security and stability for years to come. A financial power of attorney may be a practical and beneficial way you can maintain control over your money, business and assets in case you cannot care for these things yourself. An assessment of your case may help you understand how this could benefit you and what steps are necessary for a complete estate plan.