Financial Conversations with Fitz #103 - I have a power of attorney - 04/13/2012
Another great weekend of weather. Tried to rain just a bit but didn’t last long. But it is really nice and warm; did some lawn work and did put away snow equipment…so beware. Going to be cool tonight just to remind us what time of the year it is. Looks like the DOW will open on the down side. Grain Markets had a wild week. Hopefully will settle down this week. Did see some anhydrous and tillage equipment in the fields. Probably hard to stay out but I think maybe late this week will be safer. I think all of us are aware of the ‘replant’ clause in our insurance contracts for April 11th.
Well, last week we talked about senior financial abuse in general. ”I have a power of attorney” - we won’t be giving legal advice here but do want to clarify from the banks stand point. There are many different types of “power of attorney” that you should use an attorney. At the bank we have ‘power of attorney’ on our different accounts. That only gives you rights as far as that specific account goes with our bank. Each bank has their own that must be signed before it is needed. We also have ‘power of attorney’ with the brokerage office. Again that is only good with a specific broker for certain transactions. You many times sign a ‘power of attorney’ form when you trade cars with a retail dealer to handle you licenses and title. Many older client have a medical power of attorney. Again this is very specific to a medical condition. Usually has to do with using live saving equipment to revive someone that has a terminal condition. Both of my parents had them. These should be discussed with your doctor and your hospital. You may even need to carry them with you if traveling with the party that has one. You should use your attorney if you are going to use a “general power of attorney”. These need to be carefully written since they can give very broad and general powers to the appointee. In this regard there are ‘durable’ and ‘non durable’. Non durable usually ceases in case of incapacity disabled. Be sure you are comfortable with the many powers that you do give with a ‘general power of attorney’. You can give that person powers to buy, sell, mortgage or just about anything you can do yourself. That is why it is important to have sound legal advice before signing this. THE MAIN THING TO REMEMBER IS THAT ‘POWER OF ATTORNEY’ CEASES AT DEATH. If you have this and someone dies unless you were a joint owner on the account you will need a ‘power of appointment’ from the courts to set up a new account for the estate. That is why it is important to visit with your bank and your attorney how you want these things handled in case of your incapacity or death. You can start with our bank personal bankers to see how we do it. Then be sure you check with your attorney to see if your will and your papers agree with what you have set up.
Questions call TSB at Forest City, Thompson, Titonka