Powers of attorney are some of the most beneficial estate planning tools. The state of Kentucky allows you to create a financial power of attorney and one that addresses healthcare. For the aging or elderly, these documents offer a great deal of protection and peace of mind.
A financial power of attorney helps protect your assets or those of your elderly loved ones. When creating this document, you must choose a person (called an agent) to make financial decisions on your behalf. You should always select an agent you can trust to handle your finances.
What can your agent do under a power of attorney?
One of the most beneficial elements of a power of attorney for finances is that it gives you, the principle, much flexibility. Some examples of what your authorized agent can do on your behalf include:
- Gain access to your financial accounts
- Pay your bills and debts for you
- Collect debts on your behalf
- Make investment decisions
- Manage your property
- File your tax returns
You get to choose how much power you give to your chosen agent when creating your estate planning documents.
What activities are prohibited?
Although you can give your agent broad discretionary powers with this document, there are several things that they cannot do in legal terms. Examples include:
- Change the contents of your will
- Act outside of your best financial interests
- Transfer a power of attorney to another individual
- Continue accessing your financial accounts after your death
Most people rely on financial powers of attorney when they become too ill, injured or incapacitated to make their own decisions. Knowing you are protected can make a difference in your peace of mind as you grow older. Learning more about estate planning, including powers of attorney, can also help you protect your assets.