Victoria E. Knight, author of a column called "Getting Personal" (a Dow Jones Newswires Column), recently wrote about how the market drop and estate gaps create havoc. She relates a story about an elderly woman who lost half of her $6 million in savings, which had been held almost entirely in stocks. Her family looked on helplessly since this woman had no effective Power of Attorney document in place, and she had become incapacitated. She had named someone to help her in this type of situation, but that person had died, and no alternate had been named.
Every adult (i.e. over 18 years of age) should have Powers of Attorney for finances and Healthcare decisions. Incapacity can strike suddenly and not just for the elderly. As such, failure to name a trusted Agent, and an alternate to that Agent, might have disastrous consequences financially. If there is no one to make healthcare decisions, proper treatment may be delayed, or inappropriate measures may be taken. Someone to whom you would never have given the power if you had been able to do so, might be making healthcare decisions for you that are not in keeping with your wishes.
Powers of Attorney are extremely important, perhaps more important than your Will. It is also vital to choose your Agent carefully. This is the person who will "step into your shoes" to make financial decisions, if it becomes necessary for someone to help you. An Agent that you do not trust 100% is worse than no Agent at all, given the exploitation that can occur. However, a conversation with an estate planning attorney, and some reflection upon the importance of the choice of an Agent, leads most people to effective choices, even if it means using a corporate or a trusted professional as an Agent. Failure to execute a financial Power of Attorney could result in the need for a Court ordered guardianship. Guardianship proceedings are expensive, can take many months to complete, and may be very emotionally trying for the family, as well as the ward. The Court is then obligated to supervise the Guardian from then on. The appointed Guardian may not be the person you would have chosen had you made a choice.
Full Article and Source:
Legal Ease: Protecting your assets when incapacity strikes
Every adult (i.e. over 18 years of age) should have Powers of Attorney for finances and Healthcare decisions. Incapacity can strike suddenly and not just for the elderly. As such, failure to name a trusted Agent, and an alternate to that Agent, might have disastrous consequences financially. If there is no one to make healthcare decisions, proper treatment may be delayed, or inappropriate measures may be taken. Someone to whom you would never have given the power if you had been able to do so, might be making healthcare decisions for you that are not in keeping with your wishes.
Powers of Attorney are extremely important, perhaps more important than your Will. It is also vital to choose your Agent carefully. This is the person who will "step into your shoes" to make financial decisions, if it becomes necessary for someone to help you. An Agent that you do not trust 100% is worse than no Agent at all, given the exploitation that can occur. However, a conversation with an estate planning attorney, and some reflection upon the importance of the choice of an Agent, leads most people to effective choices, even if it means using a corporate or a trusted professional as an Agent. Failure to execute a financial Power of Attorney could result in the need for a Court ordered guardianship. Guardianship proceedings are expensive, can take many months to complete, and may be very emotionally trying for the family, as well as the ward. The Court is then obligated to supervise the Guardian from then on. The appointed Guardian may not be the person you would have chosen had you made a choice.
Full Article and Source:
Legal Ease: Protecting your assets when incapacity strikes
This is good information, thanks!
ReplyDeleteThis is a great article but it does miss the important point that powers of attorney don't really have the power people are told.
ReplyDeleteA judge's pen is much more powerful.
Ha, guess someone should tell her how the 'secret'
ReplyDeleteProbate courts really work!
POA's mean nothing to these corrupt players. They want the MONEY: they lie, lie, lie, to get it to. Court Appointed Attorneys are made Guardians over elders and children without due process. The Attorney hires social workers, psychologists, psychiatrists, medical doctors to work for the atty in assessing the family and the elder, children at the family's expense. It like being ROBBED and then they curse you out with out thes false allegations to prove your unfit to care for your child or parent. what they're really after is the kids trust fund and the elders estate and your inheritance. The Guardian displaces their 'ward' your loved one out of your house into a facility/WHAREHOUSE were they are neglected and abused because they have NO one Advocating for them. The Guardian has ALL rights over your loved one. The right to put a court order restraint to keep you from visiting, calling, sending mail.
this is the Biggest SCAM on American family's today and its all about the Money,they money YOU have that they can take!
I agree it is better to have your POA's in order and go one step further: FILM all events related to signing legal documents, have copies made and stash the copies in safe unrelated locations for future reference and proof if needed.
ReplyDeleteAre you aware, in the state of Illinois, guardianship "trumps" power of attorney documents?
I believe, the author of this editorial means well, but needs to study the NASGA website and blog for real life information and education in the real world of the guardianship racket.
"The Court is then obligated to supervise the Guardian from then on."
The only supervising by most probate courts is to be blind to the missing documents in the guardianship case files and to rubber stamp everything the guardian requests including outrageous billing and all requests: GRANTED, GRANTED, GRANTED for their probate pals.
I think people have to protect themselves the best they can. PoA's are necessary and everyone shoould have one -- but beware that it may not stand up.
ReplyDelete