Having your affairs taken care of should an emergency happen is incredibly important, whether you’re single or married, have kids or not.
You worked hard for your savings, and your assets should be used as you wish to take care of you in the event of incapacitation or thereafter.
As you know, a power of attorney is a great way to accomplish this goal. These documents give someone the legal right to act on your behalf, and they can be structured in a way to have broad or limited responsibilities.
A durable power of attorney remains effective when someone becomes incapacitated, whereas a nondurable power of attorney ends at that point.
For example: A couple who owns a home and rental properties and wants to take a year off to sail around the world could also appoint a power of attorney to handle their bills while they’re away.
As you have found, having a professional with this power can be expensive.
Some, charge per hour, while others may charge a flat fee on a monthly basis, Family members and friends may also be paid to take on this role, though the principal and agent can discuss a fee structure that works for everyone.
If you want a professional to act as your power of attorney but your lawyer’s rates are too high, shop around.
Ask your attorney or other professionals how much time, on average, they spend taking care of the affairs.
There are other options, such as a trust company, but those are usually for especially large estates.
Working with a financial adviser, who can create a financial plan that incorporates your goals, needs for the next 40 years and accounts for the worst-case scenario.
A planner could also look over your insurance coverage and help you make sense of how to pay for the services you want.
In the absence of hiring a professional fiduciary. People without large families or if family members are unsuitable for the role.
Younger family members, even if they’re more distant, are also viable options if you trust them, such as nieces or nephews, or children of close friends.
And in that case, you may think of two people who could take on coordinating roles, such as dual power of attorneys
Make sure to have other documents too. For example, having medical documents in place is crucial.
A living will, is used to share your wishes with medical personnel about how you’d like to be treated, or if you want them to go to extreme measures to keep you alive.
A HIPAA release form lets medical facilities release important information about patients to others, and without this, your loved ones can have a hard time finding out if you’re okay or how to help.
Thank you to Alessandra Malito and Market Watch for this content.
See full article HERE.