Dealing with property on behalf of an incompetent person is often harder than dealing with the property of a dead person. The durable power of attorney allows someone to immediately stand in and take charge of the dealings for a person who can no longer take care of their own affairs, either personal or business.
This is not the same document as a general power of attorney that you may have used to sell your dad’s car while he was out of town. That power becomes invalid when the person
granting the power (the "principal" or "grantor") becomes incompetent or dies. Instead, a durable power of attorney should be a comprehensive document that allows an “agent” to act on behalf of the principal in the case they are incapacitated. It should outline exactly what powers are being bestowed, as well as how incompetency will be determined (two doctors' evaluations? all children agree?).
There are four basic pillars of estate planning. They
all work together to protect you and your assets, provide for your family, and avoid probate. As I mentioned in the last email, the first pillar is a will. The second is a living revocable trust, the third is a durable power of attorney as discussed above, and the fourth is the living will or health care directive that we discussed a month or so ago. Videos explaining all four can be found on my
YouTube channel or on our LegaLees website at
http://www.legalees.com/basic-estate-plan/
