A Maryland resident can take a lot of pride when they consider the ways in which they have grown their wealth over time. Men and women who started out their lives with little to their names can work hard, save, and invest their incomes to build stable and comfortable retirement assets. When they reach their retirement lives, they can sit back knowing that they are provided for through their lives.
However, not every person retains the ability to manage their own financial affairs up until the very ends of their life. Illnesses, accidents, and other incapacitating events can rob otherwise financially responsible individuals from taking care of their own bills, investments, and accounts. When individuals remain alive but unable to manage their money, their hard-earned assets may dwindle and fall into disarray.
There are legal tools that Maryland residents can use to prevent this difficult scenario from playing out. The focus of this post will be on financial power of attorney documents, which can be very useful for all residents to prepare. No part of this post should be read as legal advice, and the information contained here in is general in content.
1. Elimination of uncertainty
As mentioned, financial power of attorney documents help individuals ensure that their finances are managed if they are not able to manage them on their own. This is accomplished through the naming of specific parties to take on the financial management of the incapacitated person’s affairs. Preparers of financial power of attorney documents can make their own decisions about who they want to take care of their money during their incapacitations.
2. Many types of money matters can be handled
Having power of attorney rights for financial matters gives a named party more power than just paying an incapacitated person’s bills. They generally can:
- Access and manage financial and real estate holdings;
- Collect benefits and make investment decisions;
- Operate businesses and buy insurance for the incapacitate person; and
- Retain advisors or attorneys to help manage affairs.
A lot can happen during a period of incapacitation. Having a financial power of attorney can make a world of difference.
3. Easy to draft while creating comprehensive estate plans
Any adult can benefit from having an estate plan, and a financial power of attorney can be one of the important testamentary documents that a person prepares with their trusted estate planning attorney. When considering who will care for a person’s children or inherit particular items of property from them, an individual can put in the time to consider who they trust to manage their finances in the even they cannot do so on their own.
There is no better time than now to begin the estate planning process and incorporating financial power of attorney documents into them. The future is uncertain, and powers of attorney can provide individuals with peace of mind as they know their affairs will be handled by individuals they know and trust.