Those who become incapacitated for any reason may not be able to manage their finances. However, Ohio residents and others can create a financial power of attorney to resolve this problem. A financial power of attorney is a person or entity who is allowed to conduct various transactions on an incapacitated person’s behalf. Without such a document, family members may need to go to court to get permission to manage that individual’s money.
A power of attorney can either be durable or springing in nature. A durable power of attorney lasts until a person dies or revokes the power granted to an agent. Springing powers of attorney generally go into effect after a doctor certifies that a person is truly incapacitated. The powers granted to an agent can be as narrow or broad as an individual wants them to be.
For example, it may be possible to allow an agent to pay bills or make investments on an incapacitated person’s behalf. The power of attorney document may also allow an agent to manage property, manage retirement benefits or have access to a safe deposit box. Financial powers of attorney are generally suitable for all adults whether they are single or married. It may be worthwhile to have an attorney help craft the document to ensure that it adheres to state law.
Creating powers of attorney may allow individuals to have greater control over their assets regardless of their mental or physical state. The type of powers that are granted generally depend on a person’s overall estate planning goals. Another option may be to put assets into a trust that is managed by a trusted friend, spouse or financial professional. Individuals might opt to craft such a plan with the help of an attorney or estate planning professional.
