A power of attorney document is instrumental in outlining who is eligible to step in and manage your finances if you become unable to do so. Unfortunately, far too many people make mistakes in the process of creating a financial power of attorney. While this document doesn’t need to be difficult or complicated to make, it is critical that you do it properly with the help of an experienced estate planning lawyer.
There are six major mistakes that can be made in your financial power of attorney, many of which can be completely avoided by sitting down and working with an estate planning lawyer who has extensive experience in the creation of these documents. These common mistakes include:
- Not giving authority over all types of your property. You might want to provide a comprehensive list or specify which type of property they are eligible to make decisions about.
- Not enabling your financial institutions to work with you in advance. Make sure that you have filled out the paperwork to the specifications of these banks or credit unions.
- Making your agent the joint owner of your bank account.
- Not knowing when you need to give additional authority to your agent.
- Not understanding the duties of the agent.
- Not using the power of attorney when you should have.
All of these mistakes can be avoided through your discussion with an experienced and knowledgeable estate planning lawyer.