In addition to managing your financial affairs on a day to day basis, an individual appointed to represent you can also take steps to implement your estate plan, depending on how you structure your power of attorney. A power of attorney is a crucial document in your estate planning, but it’s one you should not put together unless you work directly with an estate planning attorney. There’s a lot of peace of mind in knowing that you have chosen someone to step in on your behalf if you are unable to do so, but this appointment also comes with a lot of responsibility and is thus a decision you should take seriously.
An agent is usually unable to revise your will on your behalf but an agent can still impact the outcome of how assets are distributed by changing the title associated with those assets. This is why it is always a good idea to stipulate in your power of attorney whether or not you want an agent to have these powers. Gifts are another important aspect of many estate plans.
Your power of attorney agent can frequently make gifts on your behalf so long as he or she remains subject to guidelines that are structured in the power of attorney. In addition to making gifts on your behalf and impacting how assets are distributed, the laws in your state may also allow you to give your power of attorney real estate management powers if you do own a vacation home or valuable personal property. Talk to your estate planning attorney to learn more about this process.