Power of Attorney And Trusts

December 28, 2007

The power of attorney allows an individual to act through others; it permits the individual upon whom the power has been conferred by the court to make decisions pertaining to someone’s real and personal property as though the true owner had so decided. Some states do not allow a power of attorney to continue after an individual becomes incompetent, while other states do if there is a provision in the power of attorney that authorizes its continuance even when the person becomes incapacitated.Trusts offer another method through which an individual can permit others to assume partial or full control over financial matters. One or more persons can be named to manage their property, income-producing assets, bank accounts, and other financial matters. The use of a trust arrangement allows an individual to avoid an appointed guardian in the event that he becomes incapacitated. This is the ultimate form of pre­planning for the contingency of incapacity. To initiate a trust the family will require the services of an appropriate financial institution, such as a bank or trust company, as well as an attorney.

Posted in Legal Consideration