Last week I mentioned some of the elements of durable powers of attorney, which are marvelous devices to enable someone to act on your behalf if you are unable to do so. Here are some of the details involved in durable powers of attorney.
A durable power of attorney which is suitable in one state usually will be accepted in other states as well. However, there are some states where there are specific requirements. For example, if you are going to use a durable power of attorney to convey real estate in Florida, there is language which is required in Florida which is not needed in other states. If you are going to use a power of attorney in another state, let us know so that the document we prepare for you can be used in the other state.
We are familiar with the requirements of many government agencies, such as the Internal Revenue Service, which require specific language in powers of attorney.
A durable power of attorney can be as broad or as restrictive as you wish. If you have a specific act in mind, such as handling a real estate closing for you while you are away, the power of attorney can be limited to the activities necessary to accomplish that objective. Let us know how your durable powers of attorney is to be used, and we will see that it has the provisions needed to be most effective.
Many banks and brokerage houses question durable powers of attorney which are more than three or four years old. Many states have enacted legislation specifying that durable powers of attorney are valid no matter how long it has been since they were signed, but even so, some institutions are questioning the documents. For this reason, we suggest that new durable powers of attorney be signed every three years.
An agent under a durable power of attorney is a fiduciary. He or she must act in accordance with the best interests of the principal. We have prepared a schedule of instructions for the agent under a durable power of attorney - call us and we will send you a copy.
