When you own a family business, it is important to plan for unforeseen circumstances. Often, people don't think of preparing the necessary legal documents ahead of time. Then, when their loved one becomes stricken by a debilitating sickness (e.g. Alzheimer's or a stroke), they find themselves unable to make important decisions. The court then becomes in control of appointing a representative to act on the principal's behalf. These choices could be medical, financial or both. They could also involve having a stranger make decisions about their family business.
The above situation occurs all too often, and it can result in much frustration, along with the loss of time and funds. The effect of having an outside party make decisions regarding your family business can be overwhelming. That's why it is important to talk to your attorneys ahead of time, in order to establish the necessary papers. Here are some questions that can help shed some light on the subject.
What is a power of attorney?
A power of attorney appoints another individual as a representative to handle your affairs in case you become incapacitated. It authorizes the designated party to be in control of the situation.
Do powers of attorney differ according to individual state of affairs?
Powers of attorney documents are executed in several forms, depending on your personal circumstances. For example, a general power of attorney allows your chosen representative to make choices for money purposes. Of course, it is implemented only if you become mentally or physically disabled. A limited power of attorney allows the agent to perform a specific task within a specific time frame (ei. the person could help you buy or sell an asset). Another kind of document is a health care power of attorney, which authorizes your agent to make choices for medical purposes.
If I have not yet executed a power of attorney and I become ill, what are my alternatives?
Without signing a power of attorney, if you should lose the capacity to make decisions, the court will appoint a public representative and trustee to handle yor affairs. Getting this power back in the hands of your loved-ones can be costly and inconvenient.
If I already have a living will, is it still necessary to establish a health care power of attorney?
A living will offers direction for the family when handling affairs, while a power of attorney allows them to carry out their choices. As such, a living will does not take away the need for a health care power of attorney. They usually work hand-in-hand. In fact, lawyers often include them in the same documents when they are making a general will.
Is it normal to have my spouse as my representative?
Yes. It is normal to give your significant other the power of attorney, but in certain situations it is wise to have an alternate individual who you can trust instead. Because, if both people should become debilitated (and this can happen), it could bring about an unfortunate situation.
It is apparent that power of attorney documents are necessary to execute in case you or one of your family members becomes incapacitated. Secure your peace of mind and prepare the papers as soon as you can. Start the process and make an appointment with your professional team. The future of your family business hinges on it.
The above situation occurs all too often, and it can result in much frustration, along with the loss of time and funds. The effect of having an outside party make decisions regarding your family business can be overwhelming. That's why it is important to talk to your attorneys ahead of time, in order to establish the necessary papers. Here are some questions that can help shed some light on the subject.
What is a power of attorney?
A power of attorney appoints another individual as a representative to handle your affairs in case you become incapacitated. It authorizes the designated party to be in control of the situation.
Do powers of attorney differ according to individual state of affairs?
Powers of attorney documents are executed in several forms, depending on your personal circumstances. For example, a general power of attorney allows your chosen representative to make choices for money purposes. Of course, it is implemented only if you become mentally or physically disabled. A limited power of attorney allows the agent to perform a specific task within a specific time frame (ei. the person could help you buy or sell an asset). Another kind of document is a health care power of attorney, which authorizes your agent to make choices for medical purposes.
If I have not yet executed a power of attorney and I become ill, what are my alternatives?
Without signing a power of attorney, if you should lose the capacity to make decisions, the court will appoint a public representative and trustee to handle yor affairs. Getting this power back in the hands of your loved-ones can be costly and inconvenient.
If I already have a living will, is it still necessary to establish a health care power of attorney?
A living will offers direction for the family when handling affairs, while a power of attorney allows them to carry out their choices. As such, a living will does not take away the need for a health care power of attorney. They usually work hand-in-hand. In fact, lawyers often include them in the same documents when they are making a general will.
Is it normal to have my spouse as my representative?
Yes. It is normal to give your significant other the power of attorney, but in certain situations it is wise to have an alternate individual who you can trust instead. Because, if both people should become debilitated (and this can happen), it could bring about an unfortunate situation.
It is apparent that power of attorney documents are necessary to execute in case you or one of your family members becomes incapacitated. Secure your peace of mind and prepare the papers as soon as you can. Start the process and make an appointment with your professional team. The future of your family business hinges on it.
No comments:
Post a Comment