POWERS OF ATTORNEY, WHAT ARE THEY?  DO YOU NEED ONE?

Definition:  A Power of Attorney allows you to select another person to act for you in conducting business or making health decisions.

One hard reality of an aging population is that the chance of disability or incapacity requiring a Power of Attorney (POA) increases as you get older.  A POA may also be beneficial to those who are not elderly.  There are many situations such as accidents, medical procedures, etc. in which a power of attorney can be useful.  If you have children, a POA can make sure that your transactions, both personal and financial, can be taken care of if something should go wrong. 

The traditional POA is executed when a person wishes to allow someone else to handle his or her transactions and daily activities.  Typically, this POA is executed in the hospital bed or after being informed of a terminal illness.  It is used by married couples or aging parents to allow their children to make decisions for them. This traditional POA becomes effective immediately upon signing and must be recorded in most counties to be used to transfer property, etc. 

The traditional POA is the one most people recognize.  It is usually the case that the document is not executed until absolutely necessary because the person is afraid or uncomfortable with the idea of turning over control of their finances and property to another person.  This is where the Springing Power of Attorney comes in.

The Springing Power of Attorney (SPOA) is created by Kentucky statute and allows young, healthy people to plan for the future and provide for their well-being.  The SPOA works in the following way.  For example, you and your wife are in your mid-30s and have two children.  You know that disability due to age is likely not in your immediate future.  However, you also realize that life has risks and no guarantees.  You decide to execute a SPOA.  The SPOA does not become effective until you are determined to be disabled or incapacitated either by the terms of the SPOA or by meeting the statutory requirements.  You may choose the physician who can determine you disabled, or leave it in the hands of any licensed physician.  Such power gives you the assurance that the power will not be abused.  The SPOA stays on file until it is needed and gives you the security of knowing that the person you choose cannot transfer such authority unless you are truly disabled. 

The SPOA or POA can be combined with Wills, Living Wills, and Trusts to provide you with the complete estate plan for yourself and those you will leave behind.  Death is never a comfortable subject, but preparing now will eliminate much of the confusion and emotional trauma on the family.  Call us today to set up an appointment to discuss your estate planning.  (606)523-5100 or Toll Free 1-877-524-5100.