March 28, 2016

It is never too early to think about how you want your financial affairs to be handled in the event that you are unable to do so yourself. One of the most popular options for addressing this is putting together a power of attorney for your assets to be given to your siblings, spouse, adult child or a close friend. In this situation, you select an individual who you choose to act in your best interest to handle your investment accounts.

There are many different factors that determine the type of power of attorney you need and whether it will be considered legally valid when it comes time to activate it. A power of attorney is the legal document that you sign simply to grant another individual the authority to make decisions on your behalf. The majority of states across the country mandate that power of attorney documents need to be witnessed, notarized and in writing. It can be essential for using a power of attorney to manage your financial affairs in the event that you are suddenly unable to do so on your own.

Although no individuals can predict an accident or sudden disability, discovering yourself unable to manage your financial affairs as a result of this, without having a power of attorney can be devastating and can raise many different confusing legal questions. You need to select an individual to serve as the agent who deeply understands your objectives as well as your investment goals.

The most important qualification for any power of attorney is that your agent be someone that you can trust totally. Your agent should be committed to acting as you would and it should be someone that you trust to step in in this situation. While this is usually a spouse for many married individuals, you may wish to appoint someone else in a power of attorney authority position. Speaking to a knowledgeable New Jersey estate planning attorney about this option can give you a better understanding of whether you have considered all of the possible factors and what type of power of attorney you need.