Why Have a Durable Power of Attorney?

46 %
54 %
Information about Why Have a Durable Power of Attorney?
Law

Published on October 20, 2014

Author: litherlandlawca

Source: slideshare.net

Description

A truly comprehensive estate plan will address the eventualities that you may face during the latter portion of your life. Learn more about durable power of attorney in California in this presentation.

1. WHY SHOULD I HAVE A DURABLE POWER OF ATTORNEY? A Truly Comprehensive Estate Plan Will Address the Eventualities that You May Face During the Latter Portion of Your Life ROY W. LITHERLAND CAMPBELL CA ESTATE PLANNING ATTORNEY

2. The process of estate planning is going to have a lot to do with monetary matters. You want to make sure that your loved ones receive their inheritances in a timely and efficient manner. It is also important to address any asset protection and/or tax concerns that you may have. This having been stated, you should ideally take things a step further. A truly comprehensive estate plan will address the eventualities that you may face during the latter portion of your life. With this in mind, we will look at the value of durable powers of attorney in this paper. Incapacity Planning Incapacity planning is often overlooked because it can be hard to imagine a time when you will no longer be able to handle all of your own affairs. However, when you look at the facts, you see that incapacity is actually quite common among elder Americans. Some people become incapacitated because they have physical ailments. They simply cannot communicate. Others can communicate on a limited basis, and they may not be able to think clearly. There are other seniors who suffer from various levels of cognitive impairment. One of the primary causes of impairment is Alzheimer's disease. We have all heard about Alzheimer's disease, but you may not be aware of how common it has become. The Alzheimer's Association does a lot of great work educating the public about this looming threat. Their website contains a plethora of useful information. ●●● Incapacity planning is important because a significant percentage of elders become unable to manage their own affairs. There are many causes of incapacity, but Alzheimer's disease is a leading culprit, and it is widespread. ●●●

3. According to the Alzheimer's Association, one out of every eight seniors suffers from Alzheimer's disease. This is a reasonably significant percentage, but the likelihood of contracting the disease increases as you get older. Studies show that 40 to 45 percent of people who are at least 85 have contracted Alzheimer's. Alzheimer's disease can cause dementia, and those who are suffering from dementia are typically going to become unable to make sound decisions on their own. California Adult Conservatorship If you were to become unable to handle your own affairs due to Alzheimer's induced dementia or for some other reason, interested parties could petition the court to convene a conservatorship proceeding. The court could ultimately appoint a conservator to handle your affairs. There are some drawbacks that go along with a conservatorship. For one, the conservator that is chosen by the court may not be someone that you would have selected when you were of sound mind. Secondly, everyone in the family may not be on the same page. People could disagree with regard to the appropriate choice of conservator. Lastly, the process can be time-consuming, and this can present difficulties if immediate action is required. ●●● If you do nothing, the court could be petitioned to appoint a conservator to act on your behalf. There are various drawbacks that go along with a conservatorship ●●●

4. Durable Powers of Attorney Now that we have provided the necessary background information about incapacity and conservatorship, we can look at durable powers of attorney. You could create a durable power of attorney to name a decision- maker to act on your behalf in the event of your incapacitation. This would make a conservatorship hearing unnecessary, because a hand- picked decision-maker would already be in place. Because the document is durable, it will remain in effect even if you become incapacitated. A power of attorney that is not specifically designated as durable would become ineffective in the event of the incapacitation of the grantor. There are different types of decisions that may present themselves. There are financial matters, and there are health care issues. The person that you would like to see handling your finances may not be the same person that you would like to empower to make health care decisions on your behalf. You can account for this by executing two different durable powers of attorney: one for health care, and one for financial decision-making. You could name a different agent or attorney-in-fact for each respective purpose. When you are choosing agents to act on your behalf, you should consider longevity. The person that you choose may be called upon to act many years after you execute the documents. FREE ELDER LAW REPORT Protect Your Assets and Preserve Your Legacy With a Medicaid Plan Learn How to Plan for Medicaid Eligibility Download Your Free Report Today Medicaid (Medi-Cal in California) is a government funded program that provide financial assistance for seniors that need help paying for healthcare services such as a nursing home. People must meet certain criteria in order to receive Medicaid. In some cases, trying to meet eligibility for Medicaid can leave a person with nothing, often having to deplete their net worth, or give assets away in order to qualify for Medicaid. But with a little Medicaid Planning, you can use this government benefit and still retain your estate.

5. Conclusion Incapacity planning is important, because a significant percentage of elders become unable to manage their own affairs. There are many causes of incapacity, but Alzheimer's disease is a leading culprit, and it is widespread. If you do nothing, the state could be petitioned to appoint a conservator to act on your behalf. There are various drawbacks that go along with a conservatorship. When you execute durable powers of attorney, decision-makers of your own choosing would be in place to act in the event of your incapacitation. To put these essential documents in place, schedule a consultation with a licensed estate planning attorney. References American Bar Association http://www.americanbar.org/groups/law_aging/resources/health_care_decision_making/consumer_s_toolkit_for_health_care_advance_planning.html Alzheimer's Association http://alz.org ABOUT THE AUTHOR ROY W. LITHERLAND Roy Litherland has been providing legal services in Santa Clara and Santa Cruz Counties continuously since 1975. Roy has an undergraduate degree in accounting from Indiana State University, and a Juris Doctor degree from Indiana University, where he graduated cum laude. In law school he was a recipient of the Dean Faust Award and received awards and honors in income taxation and estate and gift taxation. Roy is certified as a Legal Specialist in Estate Planning, Trust and Probate Law by the California State Bar Board of Legal Specialization. 3425 S. Bascom Ave, Suite 240 Campbell, CA 95008 Phone: (408) 356-9200 www.attorneyoffice.com

Add a comment

Related presentations

9593

9593

November 11, 2014

Fallo 9593

This brief presentation covers the concept of 'Fit for purpose' obligation in vari...

The Affordable Care Act (ACA) has met with further hurdles as a DC Court of Appeal...

An impartial and clear mindset is needed when presiding over court proceedings tha...

VONNIS waarbij Hedwig Van Roy niet meer mag zeggen uitvinder te zijn van CLICS. Er...

Constitucional habeas corpus cc liminar

Law

Related pages

Why a Durable Power of Attorney is Essential

... professionally drafted durable power of attorney ... Why a Durable Power of Attorney is Essential. If you don't have a durable power of attorney, ...
Read more

What is Durable Power of Attorney? - AgingCare.com

A durable power of attorney is essential because if a ... Anyone who wishes to undertake these tasks would have to go to court and ... Durable POA and ...
Read more

Power of attorney - Wikipedia, the free encyclopedia

If a person does not have the capacity to execute a power of attorney (and does not already have a durable ... power of attorney; i.e., a power that ...
Read more

Why You should have A Durable Power of Attorney? - TRCB

Most common power of attorney authorizes an agent to act in behalf of the principal to carry on functions such as to: Draw checks on specified bank ...
Read more

Why Have a Power of Attorney? - Andrews & Young, PC

Why Have a Power of Attorney? ... most modern powers of attorney are “durable” powers of ... proceeding to have someone conserved generally involves an ...
Read more

Durable Power of Attorney - Kansas Bar Association

A Durable Power of Attorney is a ... Why should I have a Durable Power of Attorney? It is generally advisable to have a Durable Power of Attorney for ...
Read more

Why Should I Have a Power of Attorney? - Legal Documents

Why Should I have a Power of Attorney. ... You may think that once they have appointed a durable power of attorney you lose ... Durable Power of Attorney;
Read more

Financial Powers of Attorney: Do You Need One? | Nolo.com

Financial Powers Of Attorney; ... Why Sign a Power of Attorney. Making a durable power of ... If you don't have a durable power of attorney and you ...
Read more

FAQ About Power of Attorney: AARP - AARP

FAQ About Power of Attorney. by AARP, November 2008 | Comments: 0. Join the Discussion | 0 | Add Yours. ... Have Fun. Entertainment; Games; Horoscopes ...
Read more

ESTATE PLANNING: Power of attorney - May. 29, 2015

... make sure someone you trust will by assigning power of attorney when ... There is also the "durable power of attorney." ... you will have to ...
Read more