Estate Planning – Financial Power of Attorney

Your finances deserve thoughtful, nuanced consideration, and nowhere is this more true than in your estate plans. In this Q&A article, we’ll help you understand how a financial power of attorney can protect your wealth, how to manage paying bills should you become incapacitated, and how to choose a financial agent best suited for the role.

What Authority Does A Financial Power Of Attorney Grant?

A financial power of attorney allows someone you have chosen, known as an agent, to handle your financial affairs on your behalf. This could include paying bills, managing stock market investments, and handling property-based transactions (such as collecting rent from tenants).

Financial power of attorney allows your finances to be managed according to your wishes should you become incapacitated. Your agent’s power and authority can be either broader or more limited, depending on your needs, concerns, and wishes.

When Does A Durable Power Of Attorney Take Effect?

Durable power of attorney typically takes effect immediately after signing, but it can also be drafted to take effect only once you become incapacitated. The term “durable” means the document remains binding even if you become mentally or physically unable to manage your own affairs or speak for yourself.

Can I Appoint More Than One Agent For Financial Decisions In Michigan?

Yes, you can. Michigan law allows you to appoint more than one agent to act either jointly or separately. Some clients choose co-agents to share financial responsibilities or to provide checks and balances.

While this type of arrangement could help prevent abuses of power, it’s also important to choose two people who are both honest and financially responsible, and who can work together effectively.

A lawyer can help you structure this document to designate clear agent roles and to avoid conflicts over responsibilities.

How Can A Lawyer Help Draft A Customized Power Of Attorney?

Your lawyer can tailor your power of attorney document to reflect your unique financial situation and goals. They can include specific instructions, define which powers an agent has, and make sure the document is in alignment with Michigan’s legal standards.

Finally, a power of attorney document drafted by an experienced estate planning lawyer reduces the risk of family disputes, confusion, and court intervention in your affairs.

Never try to handle estate planning alone! Instead, allow an experienced attorney to listen to your unique concerns and draft documents that are binding, tailored, and truly reflect (and protect) your wishes and values. Unsure of how to protect your financial health in the long term? Michigan attorney Brandon Wagner can help you draft careful, binding documents to ensure your finances are managed and your wealth protected for years to come. Have questions, or ready to get started? Reach out to Wagner Law at (248) 800-2548 for an initial consultation today.