Assigning financial powers of attorney cannot be overlooked

Preparing an estate plan can feel overwhelming. It is understandable, as one just wants to ensure all his or her bases are covered. The truth is that a lot can be overlooked if one is not careful. One thing that Michigan residents should most certainly not ignore is the assigning of financial powers of attorney.

Granting a loved one, friend or other suitable representative financial powers of attorney will allow that individual the ability to control one's monetary assets and property in the event of incapacitation. This person will be placed in a position where he or she will have to make a number of important decisions. This is a significant responsibility, one that not everyone is prepared to handle.

To keep thing easy and straightforward, if a financial power of attorney is put into effect, the representative can do a few simple things to keep his or her loved one's financial affairs in order. These include keeping a bank account in the principal's name and including the phrase power of attorney when signing checks or making other payment types. Doing these things will ensure the principal's funds are kept separate and only used for his or her needs.

Before assigning financial powers of attorney, it may be good to discuss the matter with any potential representatives. Doing so can prepare them for the job. Along with talking with one's chosen representative, one can document final wishes in detail in an estate plan, which will only help one's agent in his or her decision making process. An experienced estate planning attorney can assist Michigan residents with ensuring financial powers of attorney are created and assigned and that clear instructions are ready if they are ever needed.

Source: FindLaw, "Power of Attorney for Financial Matters", Accessed on Feb. 2, 2017