DPAs for Finance

Everywhere we look businesses are folding and personal savings is deteriorating. It may be time for a second look at who you have put in charge to manage your finances. It is highly recommended that you turn to a professional accountant or attorney to help you with a Durable Power of Attorney for Finance, but you can prepare to do one on your own so long as you know ahead of time your financial needs and what should be included.

A Durable Power of Attorney gives total power to another to manage your finances. You can make this provisional upon your disability or death or make it contingent upon specific criteria. It will be your preference to succession, somewhat like a Will, as to who will serve as "Attorney in Fact" or as Agent of your estate in case of guardianship proceedings. Everyone should have a DPA, especially the elderly, disabled or those with families.

Here are just some of the questions you will need to consider before creating your DPA:
l. Effective date
2. When the Successor Agent Is Entitled to Act
3. Powers
Relating to Real Property, tangible personal property, stocks and bonds, commodity and option transactions, banking and other financial institution transactions, business operating, insurance, estates, trusts and other beneficiary transactions, and claims and litigations. There will also be power relating to personal and family maintenance like health care and domestic help, receipt of benefits from Social Security and Medicare or benefits from military service, retirement plan transactions, tax matters, transfer to medical facility, and charitable gift transfers.
4. You will need to state the purposes of the DPA.
5. Limitation in Powers, if any, such as "they shall not exercise any powers for Agent's own benefit."
6. A Termination and Revocation date can and should be set.
7. General Accounting Provisions, including compensation and hold harmless (indemnity) clauses, court enforcements and applicable law. Another major issue of importance today is the HIPAA release of authority, giving your agent right to access your medical and medical-financial records.

Once completed by your attorney or online you will need to sign and date it with certification of your signature or witnessed by a Notary Public in your state. Make sure that their commission is current and that you have initialed and dated all pages. You can then make copies to take to your local courthouse for filing.

DISCLAIMER: This is simply an overview of what could possibly be contained in a DPA document. You will need to consult with a licensed attorney for preparation and further consultation.