Paul: Kraig, I want to talk about the Financial Power of Attorney now, which is another foundational component of the estate plan. Tell us about that.
Kraig: The Financial Power of Attorney, I think personally, of course, the health care is important but the financial one; this is checkbook control over your financial matters, whether they be business or personal. This is where you actually give a representative, in this case called your Attorney In Fact, the power to act on your behalf in financial matters. This could be discussing your mortgage, completing the purchase of home, business transactions, all of those things that might be financial in nature; it is literally giving someone checkbook control to act on your behalf if you are not able to do it.
Paul: So that is an important role and obviously, nobody ever wants to think you are going to need somebody to do this. But, especially for business owners your own rental property or just anything yeah you know, checking accounts, I mean this person will be able to pay rents mortgages you know, business operations of the business correct?
Kraig: Absolutely! I have a situation right now that’s a great example for this that I think would be helpful for everybody is that this is a situation where Dad is, he is okay, he’s all right, he has his faculties, what he doesn’t have is the ability to easily move around and take care of business. Therefore, he gave his son power of attorney, appointed his son as in fact so that on his behalf, right now, his son can talk to the investment company where his retirement accounts are. His son was also able to sell his home and act as his attorney in fact to sign all the paperwork and get the house sold so Dad didn’t have to go through the stress of being transported all over the place. It was a good situation and a great example of how the power of attorney can really step in and be that living document for someone.
Paul: Excellent! How do you present that to someone if a financial institution asks for it? Is there a document, is it notarized that you give them?
Kraig: Great question, yes the power of attorney for financial matters is definitely a notarized document. And if you get it from a law firm like ours it will generally be a robust document. What I mean by that is a substantial document not just two or three pages long but the power of attorney for financial matters is essentially a legal toolbox for your representative to act on your behalf. In addition, when a client needs to put that power of attorney to use, they will generally walk into a bank for example, mortgage company, or wherever it might be. They will hand over a copy of that power of attorney document. That company, the bank or the mortgage company will review it put it on file and they will start working with your agent, your attorney in fact.
Paul: Excellent! Kraig, great information. Thank you everybody for joining us. We’ll see you here next time and Kraig I know we’re going to be doing this again thanks.0