August 18, 2021
Power of Attorney FAQs
A power of attorney is an important document that grants your agent access to all of your assets and legally gives them the power to handle transactions on your behalf if you become incompetent. You must gather all the information you can about power of attorney and how it can be used or abused by the agent you choose before you sign one.
Compiled below are some of the most frequently asked questions about a POA-
Why Do I Need a Power of Attorney?
A power of attorney streamlines the financial processes for your loved ones after you become legally incompetent. Many institutes deny access to accounts if both partners are not present, showing a POA can prevent such situations.
What is Meant by Incompetency?
Legally incompetent is a term used when the principal lacks the mental capacity to make correct decisions. It can be caused due to latent diseases, age factors, or accidents.
What is a Non-Durable Power of Attorney?
Non-durable power of attorney is a legal document created when someone cannot be physically present at a place and names someone else to make transactions on their behalf. It is only valid till the principal is alive and competent, tasks are unfinished, and the POA is not revoked.
Can Someone Abuse a Power of Attorney?
POA can be very easily abused if the agent is not trustworthy and loyal. It is advised to create a special POA that limits the accessibility of the agent to the principal’s assets.
How Many Agents Can I Appoint for My Power of Attorney?
There is no limit on the number of agents. Further, you can also mention how all the agents should make decisions for you and the powers of individual agents.
Can We Create a POA After Someone is Declared Legally Incompetent?
You cannot create a POA for an incompetent person. Although, you can set up guardianship for them, which is similar to POA, and defines the relationship between two adults where the guardian makes financial and health-related decisions on behalf of the incompetent person.
About Castle Wealth Group
Are you searching for a reliable and quality company to assist you with all power of attorney procedures? At Castle Wealth Group, we build a perfect strategy for your retirement, including income planning, investment planning, tax planning, health care planning, and legacy planning. Visit our website or call us at 844.885.4200 or email us for your financial advice.