Powers of Attorney
Why do I need a Financial Power of Attorney?
A springing Power of Attorney is a written authorization appointing another person to act for you in a business, legal matter or other private affair when you are incapacitated.
Powers of Attorney in Action
As an example, if I am in a terrible auto accident and am taken to the hospital in a coma, chances are I will not be able to work for a while. So, if my wife needs to raise some cash she could take out a loan against our house, since it has enough equity it for her to raise some needed cash because of the emergency. When she goes to the bank, the banker will gladly make the loan and give her the money, but first he will ask her to sign a Note and then ask for me to sign it as well. When she tells him I can’t sign because I’m in the hospital, he’ll say “Sorry, I can’t give you the money without both signatures.”
So, the Financial Power of Attorney frees my wife up, as she can use that document to sign for me and get the needed money.
And, it’s not just for emergencies or accidents. Clients who are married to military personnel need a Power of Attorney sometimes when their spouse is deployed and unavailable to handle a business or family matter. Once again, the Power of Attorney can free up the spouse to deal with the matter without delay.
Properly Draft Your Estate Plan
For those reasons and others, a Power of Attorney is an important document to have as part of a properly drafted estate plan. At the Law Offices of Joseph Adelizzi, our attorneys are happy to help you decide what kind of power of attorney is right for you and your estate plan. Call to discuss Powers of Attorney today.