The importance of working with an attorney to draft durable POA

Understanding how to create a proper estate plan can be a complicated process, especially when it comes to crafting durable POA. A confident attorney may be able to help this process go smoothly.

Crafting an effective estate plan requires the proper management of many different matters, which is why an attorney should be used to help with the process. One of the areas where the usefulness of an attorney is most apparent is in the appointment of someone to make financial decisions for you. The best way to appoint someone is by utilizing a Comprehensive Durable Power of Attorney. It is crucial that the Power of Attorney (POA) used is a New York Statutory Durable General Power of Attorney. A "durable" POA will permit the agent to act even if someone becomes mentally incapacitated at any point in their life. Not only is it important to choose the right person as agent, but also, to appoint someone to be a successor agent in case the person you appointed cannot act for you later.

Why people should use an attorney to draft durable POA

It is paramount to have an attorney assist in the drafting of the POA because you must include comprehensive power provisions rather than just fill-in the blanks in the statutory form. One of the potential complications people can run into is a POA that is written in such a way as to prohibit the creation of trusts, which can be a very important aspect of estate planning/Medicaid planning.

What people should know about the Statutory Gift Rider provision

One example of a provision within POA that can be difficult to understand without an attorney is the Statutory Gift Rider. The Statutory Gift Rider can be drafted to lift the limits of $500.00 that would otherwise be the limit for gifting or transferring of assets. The Statutory Gift Rider also is the place to elaborate on the comprehensive powers referred to above. Without guidance on the completion of the form and the necessary add-on provisions, the drafting of the POA can be woefully incomplete.

Anyone who is working through the process of estate planning will want to make sure that all of their matters are properly attended to and their family will be taken care of after their passing. Whether it is drafting a will, filling out durable POA or just understanding how the probate process works, an estate planning and administration lawyer in the local area may be able to help.