Preparing a power of attorney could be an essential step in a comprehensive estate plan. By establishing a trusted person as an attorney-in-fact, a grantor gives that person personal representative authority under Florida law. The agent may handle many affairs on behalf of the grantor and could perform such duties with greater competency. Before signing a power of attorney form, the would-be grantor may benefit from understanding the benefits and limitations of POA arrangements.
Potential benefits to POA agreements
A lack of experience or knowledge could make someone less capable of handling personal affairs. Sometimes, age and health might lead to a diminished mental capacity, and a more competent person might need to handle specific tasks. One person’s career or business pursuits may involve significant travel or time dedicated to specific duties. In all these cases, a durable power of attorney allows someone else to take care of matters.
Most people opt for financial power of attorney forms but do not explore options for a health care one. Financial power of attorney contracts does not apply to health care matters and vice versa. Accordingly, estate planning steps could involve crafting two agreements.
Considerations for power of attorney arrangements
Not every entity may accept a power of attorney form due to concerns over fraud. As an example, a bank or brokerage firm may require a POA form specific to its institution. Signing these specific documents might become a necessary aspect of estate planning.
Other entities might not accept a POA form signed years ago. Although the document might be valid under Florida law, an institution might reject it. In some situations, an agent may need to sue an institution to address compliance with the document.