Using a simple power of attorney form makes it seem as though it will be a seamless process to transfer financial authority to this person. However, you might not realize in filling out a simple online form or downloadable PDF that there are significant powers a DIY template like this does not include.
It’s important to educate yourself about these possibilities so that you can determine whether there are circumstances in which you need to give your agent extra authority. Basic power of attorney documents usually do not include the authority to:
- Delegate the agent’s existing powers to another individual.
- Update designations for beneficiaries on retirement or life insurance accounts.
- Amend or create trusts on behalf of the principal in the power of attorney.
- Create gifts from a property.
One of the reasons that simple forms don’t include these powers is because they can be very dangerous if given to the wrong individual. This could ruin your estate plan and eliminate this property if you don’t have any trusted POA agent. However, if you do trust your POA agent and want this person to have as many choices as possible for taking care of you, these powers can be essential. You’ll want to discuss the options with your estate planning attorney to determine whether or not you wish to allow for additional care and options.
Need more information about what this looks like in New Hampshire or Maine? Use us as a resource- schedule a call with our NH estate office today.