What kind of power of attorney do I need for my son?

Durable power of attorney. You may also want to consider a durable power of attorney, especially if your son’s college is far away.

Why is a durable power of attorney important?

For most people, the durable power of attorney is the most important estate planning instrument available — even more useful than a will. A power of attorney allows a person you appoint — your “attorney-in-fact” or “agent” — to act in place of you – the “principal” — for financial purposes when and if you ever become incapacitated.

When do you need a financial power of attorney?

What Is a Financial Power of Attorney? A financial power of attorney is just a document you need when you want to grant someone else the power to make money decisions for you. And it’s usually created alongside your will. This kind of POA is written specifically to let someone else act as your legal rep for financial matters.

Can a durable power of attorney be cancelled?

The term “durable” means that if the principal would become incapacitated or no longer be able to think for themselves that the form would remain valid and in effect (unlike general power of attorney ). Once durable power of attorney is made the only way to cancel is by: Death by the principal.

What is a durable power of attorney for finances?

A durable power of attorney for finances is a document that allows another person to make decisions about your financial accounts if you are incapacitated. This document authorizes the agent who is typically a sibling, spouse, or child to act on behalf of the principal.

What did Steven do with his mother’s power of attorney?

Steven begins using his mother’s account to cover his credit card payments, to pay his bowling league dues, and to take an exotic vacation without his mother’s knowledge or authority. Steven may even decide to sell Karen’s house while she is still capable of living at home and use the proceeds to buy himself a luxury yacht.

The term “durable” means that if the principal would become incapacitated or no longer be able to think for themselves that the form would remain valid and in effect (unlike general power of attorney ). Once durable power of attorney is made the only way to cancel is by: Death by the principal.

Who is the principal in a power of attorney?

In the context of a POA, a principal is just the person whose money is being protected. And the person you choose to do things with your money when you can’t do them yourself is known as the agent or attorney-in-fact. How Does a Financial Power of Attorney Work?