Protect Your Interests with the Right Durable Power of Attorney
Many people understand that they may need estate planning documents to help their loved ones after they pass away, but they often do not recognize the potential problems that could arise if they are still living but become incapacitated for a period of time.
An unexpected accident or illness could strike anyone at any time. If you were unconscious and unable to make or communicate decisions, what would happen with your personal financial affairs? Would anyone be able to access accounts, pay your bills, and keep things going until you recovered? If you have a durable power of attorney prepared, the answer is a resounding, “yes.”
At Mazza + Niro, PLC, we create durable powers of attorney that convey just the right amount of power tailored to your specific goals. We take the time to understand all the details that impact your situation, and we build plans designed to meet your needs in the short and long term.
How a Power of Attorney Works
When you establish a power of attorney through a legal document, you authorize someone as an agent to act on your behalf. You grant your agent the authority to step in and assist you with your financial affairs either immediately or upon your incapacity. You may decide to retain authority yourself and share it with your agent, or you may decide to allow your agent to act alone in the event you were to become incapacitated. In Arizona, the law recognizes powers of attorney granting authority over two main aspects of your life: financial matters and health care decisions. A durable power of attorney enables someone to manage financial issues for you according to the terms you set.
It is important to understand that simply executing a durable power of attorney helps eliminate the risk that an individual can obtain a court-ordered Conservatorship over you. The goal of proper estate planning, such as preparing a durable power of attorney, is to avoid court-involvement with your financial affairs.
It is also critical to understand that power of attorney for financial matters does not give your agent ownership of your assets, but just the ability to manage them. That makes a durable power of attorney a much safer option than adding someone’s name to your bank accounts. When you add someone to an account as a joint-owner, you give them ownership of those assets and their creditors can seize the assets in the event they default on their debts or they become otherwise liable to someone in the context of civil lawsuit.
You Can Change or Revoke the Power at Any Time
Once you create a durable power of attorney, you retain the ability to change it or cancel it at any time so long as you retain the legal capacity to do so. If you feel your agent lacks financial judgment, you can designate a different agent, or limit the agent’s power. If you want to expand your agent’s authority, you are free to do so.
If the power makes you uncomfortable and you want to use another method to protect yourself, you can revoke the power easily. You stay in control of your own affairs, unless a doctor declares that you no longer have the legal capacity to make binding decisions.
The Power Can Be Broad or Narrow
A durable power of attorney should be crafted to your specific needs. If you want to give your agent access to only one or two accounts to pay bills in an emergency, our team can limit the agent’s power to those specific accounts. You can set up the power so that it only becomes effective at a certain time or when a certain event occurs, such as if a doctor determines that you are incapacitated. This is known as a springing power of attorney because it springs into action when needed. You can also establish a power of attorney that becomes effective immediately. For instance, you might want an adult child to be able to assist with managing your accounts and paying bills on an ongoing basis.
We create financial powers of attorney that are durable so that they remain in effect even if you have been declared legally incompetent. Under old traditional rules, a power of attorney document would become invalid if the person who granted the authority became incapacitated. That made the document ineffective at the very time it was needed most.
Let Mazza + Niro, PLC Protect You with a Custom Power of Attorney
No one wants to contemplate a future where they are not able to make or communicate their own decisions or manage their own finances. However, emergencies can strike without warning, so it is better to be prepared for the worst. Having a durable power of attorney in place can prevent your family from having to go through costly and invasive guardianship proceedings to gain the ability to assist with financial matters.
We invite you to schedule a consultation to learn how Mazza + Niro, PLC can help you stay prepared for whatever the future may bring with a durable power of attorney. Contact us online or call us at 480-923-5427.