When a person no longer has the capacity to make sound financial decisions, action must be taken to protect that person’s assets. If control of finances is left with the incapacitated person, that person may carelessly handle his or her life savings, or an unscrupulous person may try to take control of those assets. The family members must step in lest the person’s assets be lost or frittered away.
One effective way to protect assets is to create a durable power of attorney (POA). This document appoints someone (called the agent or attorney-in-fact) who can conduct financial transactions on behalf or someone who is unable to make sound decisions about such matters.
At Colucci Colucci Marcus & Flavin, PC, we create durable powers of attorney to plan in advance for future disability. Persons who become incapacitated without having executed a durable power of attorney have no one to handle their financial affairs. A properly executed durable power of attorney may prevent the need for a conservatorship.
For more information about your options, contact our firm.
A lawyer our firm can review your situation and recommend a solution that can achieve your estate planning goals. We can draft a power of attorney for a reasonable and affordable fee. Compared to other possible solutions, such as a conservatorship, the cost of creating a power of attorney is modest. It also imposes little administrative constraints on the person who is granted the power of attorney.
Care must be taken however, when choosing a person to act on behalf of the vulnerable person. The agent chosen must be someone who can be trusted to manage the financial affairs of the person in a way that protects the person’s assets. The document can also be drafted to include specific provisions which can place restrictions on the ability of the agent to conduct certain types of transactions.
For a consultation about ways you can protect a family member’s assets, contact our firm.