Common Power of Attorney Questions Answered

Many people have questions about how the power of attorney process works. If you are considering choosing a power of attorney, there are many things that you will need to consider. Here are the answers to some of the most commonly asked questions regarding power of attorney.

How Do You Pick an Agent?

One of the most important parts of the process is choosing an agent to give your power of attorney to. When choosing an agent, it is critical that you select someone that you can trust. You are going to be giving complete control of your financial situation to another individual. This means that you need to be able to trust the person beyond the shadow of a doubt. In many cases, you will want to choose a family member that you can trust.

What Kind of Power Does the Agent Have?

It is important to choose the proper agent because she is going to have a lot of financial power. With power of attorney, an individual can make many decisions that influence your financial situation. For example, she may be able to buy or sell real estate. She can pay your taxes for you. She can make investment decisions for you and use your money to purchase stocks or other securities. She can make legal claims and undergo litigation on your behalf. She can make banking transactions for you and transfer your money to other accounts. She can use your money to purchase everyday items for you or your family. She can also purchase insurance policies for you on your behalf. If you have a business, she may also be able to make decisions for the business.

Can an Agent Steal My Money?

Many people are unsure of whether an agent could potentially steal their assets with power of attorney. Basically, it is possible for someone to misappropriate funds when she has power of attorney. Your agent could transfer assets into her bank account or use your money to purchase things for herself. This is why it is so critical for you to choose the right person when selecting an agent with power of attorney privileges.

Do I Lose the Ability to Make Decisions?

Many people think that providing someone else with power of attorney means that they will no longer be able to make their own financial decisions. This is simply not true. As long as you are able to make your own decisions, you will be allowed to do so. This person is just your agent, which means that she can make decisions for you also. However, if you are able to make your decisions, you will still have power over your financial affairs.

Who Monitors Agents?

There is no governing body or organization that monitors the actions of agents. If you want to know what your agent is doing with your financial situation, it will be up to you to monitor her.

What is a non durable power of attorney?

A non-durable power of attorney is one that will not necessarily last for the long term. This power of attorney will end at a specific time according to the non-durable power of attorney paperwork. This type of power of attorney is generally used when you will be out of town for a certain amount of time and you want someone to handle some type of legal matter for you. The person to whom you give non-durable power of attorney will not continue acting on your behalf if you become disabled.