July 2020 - K.T. Williams Law

Planning for the future is never easy, especially when that involves thinking about end-of-life issues. Did you know, however, that discussing these concerns now can help you and your aging parents pave a clear path for the future?

Your parents should know about the importance of a power of attorney (POA). It is a crucial aspect of estate planning, albeit a complicated one. Let us discuss a few questions you can ask your parents, so you will know what to expect.

When does your power of attorney take effect? A power of attorney transfers responsibility and decision-making powers from the grantor to an agent. When establishing the POA, your parent can specify when he or she wants the document to take effect. For instance, your parent has the ability to specify that it should only go into effect after he or she has become mentally incapacitated. This is called a durable power of attorney (DPOA).
What responsibilities does the POA cover? If your parents have established a POA, you will want to discuss with them what authority they have granted the agent(s). There are different types of POAs, each with unique attributes. For instance, a POA for health care, otherwise known as a health care surrogate, assigns the right to make health care decisions. A financial POA covers the management of financial accounts and transactions specified in the document.
Have you selected a trustworthy individual as your agent? Those tasked with the role of agent in a POA are empowered to address important matters on behalf of the grantor. Selecting an agent is not a decision to be taken lightly. Discuss with your parents who they have selected as a POA agent and really flesh out why they believe this person is qualified and trustworthy.

A power of attorney can only be granted by someone who is mentally sound. If there is any doubt that the grantor is unsound, the POA can be called into question. This is one of the many reasons that time is of the essence in estate planning. Have your parents put a POA and other legal protections in place before the need for them actually arises. For all of your estate planning questions, our office is here to help provide you with answers.

Did you know that estate planning is important for many reasons, but all of them can be undermined if your original estate documents are missing, stolen, or damaged beyond recognition? Failing to safely store signed estate documents can cause irreparable, and avoidable, harm. Let us take a moment to discuss four ways to prevent that from happening:

1. Safe Deposit Box. Safe deposit boxes are ideal when it comes to protecting important documents. They are basically miniature bank vaults that store valuable items and protect against home hazards like accidental loss, water damage, fire and theft. Problems, however, can arise if the box-holder becomes medically incapacitated or dies without providing access to the box. Consider granting a family member or trusted confidant joint access to the box, particularly if they are your designated health care agent or your estate’s personal representative.

2. Storing them at home. If you are going to store original estate documents at home, put them in a waterproof container and out of harm’s way, such as a high shelf to avoid flooding. A home combination safe is also a good option as they can be both waterproof and fireproof in addition to protecting against theft. Make sure someone you trust can get inside the safe in the event you fall ill or pass away.

3. Online hosting. Storing original estate documents online is a growing trend with many benefits, including portability and ease of access. All you need is WiFi and a password. Providing executors, trustees, and beneficiaries with access can help them better understand their roles and your explicit desires. Not everyone, however, may be comfortable putting sensitive information online, so, be mindful if you are helping an aging parent who may be skeptical.

4. Estate planning attorney. Storing original documents with an estate planning attorney is another safe option, especially if the attorney helped craft the documents. At a minimum, storing signed back-up copies can offer an added layer of protection from a legal expert with a fiduciary duty to act in your best interest.

Storing crucial legal documents is just one of the many important decisions you will face during the estate planning process. Should you need help developing an estate plan or have any related questions, please feel free to contact our office and schedule a meeting.

Questions to Ask Your Aging Parents: Do You Have a Power of Attorney?

Consider These 4 Ways to Safely Store Your Original Estate Planning Documents

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