I have many clients who wish to use Durable Powers of Attorney (“POA”) in their estate plan. POAs can be a very useful tool in managing your estate during any periods of mental incapacity where you are unable to make financial decisions on your own or act in your own self-interest.
A springing POA is a document that gives another person the ability and authority to act on your behalf and make all financial decisions for you during any period of time that you lack capacity to make decisions on your own. These powers can be vast, ranging from managing you bank accounts and or selling property to voting your shares of stock or settling lawsuits. You can limit the powers by drafting a limited power of attorney to address on issue in particular; however, most people prefer the durable approach, granting wide authority to individuals that they trust to manage their affairs.
Keep in mind that this can also be done without a POA by adding the individual that you are granting the authority to your bank accounts or title to other property. This however vests title in these assets to the individual rather than just the authority to manage assets, meaning the property becomes as much theirs as yours rather than simply creating a fiduciary duty between them and you.
I hope you find this useful. If you wish to set up a consultation to discuss your estate plan, please feel free to contact us at (843) 903-1212 to set up a consultation.
Dennis J. DiSabato, Jr.
The Law Office of Dennis J. DiSabato, Jr., LLC
3888 Renee Drive, Suite 201
Myrtle Beach, SC 29579