If you made a power of attorney as part of a comprehensive estate plan, you will want to know how and when these powers end. When you create a power of attorney you become a principal, while the person who receives the authority to act is known as your agent or your attorney-in-fact. There are several ways a principal can terminate an agent’s authority under a power of attorney.

Notification

As long as you remain mentally capable you can terminate your agent’s authority whenever you wish. In practical terms this means you must be able to contact the agent and tell him or her that the powers are terminated. This can be accomplished with a phone call, face-to-face meeting, or through written communication. However, the agent’s ability to act on your behalf continues until he or she actually learns of the termination of powers.

Incapacitation

If you granted a non-durable power of attorney, your agent’s abilities to act for you cease as soon as you become incapacitated. Essentially, if you lose your ability to make choices, your agent can no longer act on your behalf. However, an agent granted durable power of attorney does not lose his or her powers upon your incapacitation.

Death

All powers of attorney terminate automatically once the principal dies. If you want someone to represent your interests, or the interest of your estate, after you die, you will need to appoint an executor or personal representative through your last will and testament.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Some people try to save money by making their own legal documents. This is especially true when it comes to powers of attorney because they often appear simple and relatively straightforward. While it is true that you can attempt to create your own legal documents it is never going to be a good idea. Here are a couple of reasons why.

Court Interpretation

If there is ever a situation when you need to use your power of attorney after you have become incapacitated, you will need to make sure the document is as clear as possible. Since you will not be around to testify, the courts will have to rely on the document to determine what your intentions are. People who do not have experience drafting these documents may not be familiar with previous court decisions about powers of attorney, and may not understand how a court will interpret your document.

Legal Language

There is some language or “magic words” that you will need to include in your power of attorney to make it legal. However, some other words are not required and may actually be counterproductive if you include them. For example, a lot of people use the word “heir” when creating a will or even a power of attorney. Unfortunately, this term is often very ambiguous and can mean different things in different situations. A good attorney will know what words to use and, sometimes more importantly, what words to avoid.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Sadly, illness or the aging process itself can cause our loved ones to slowly fade from view. If this happens to one of your loved ones, there are legal remedies available to help protect them and their interests. One such remedy is the appointment of a financial power of attorney.

The financial power of attorney was originally created as a more affordable alternative to a guardianship or conservatorship; additionally, using a financial power of attorney allows your loved one to choose who will act on their behalf instead of having that person selected by the court. Because of the greater flexibility and affordability of the financial power of attorney, it has become a popular planning device.

So who is able to be appointed with financial power of attorney? Actually, there are only a few limitations on who may serve; in fact, the power may be granted to an entity, such as a bank or investment firm, and not just a person. If a person is chosen, that person cannot be a minor (i.e., under 18 years old) and must be of sound mind. Part of the reasoning behind this is obvious, but it is also because the financial power of attorney has, well, a vast amount of financial power to act in regard to the principal’s property.

Appointing someone with financial power of attorney is, unfortunately, not necessarily an honor. It comes with a huge burden of responsibility, so you should ask someone if they would be willing to undertake the task prior to any appointment. You should also have some alternatives in mind, should the first choice decline, or becomes incapacitated or incompetent later on.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

If you’re young, single and don’t have kids, you’re about as likely to have an estate plan as you are to have an AARP membership. Yes, as a young, single person it’s probably unlikely you’ll ever need to use any part of your estate plan soon, that doesn’t mean you don’t need one. In fact, single people have a greater need for some estate planning elements than married people. Let’s take a look at what a single person needs when it comes to estate planning.

Your Medical Choices

If you’re single and suddenly get sick or injured, who will make your medical decisions for you if you cannot communicate? If you don’t have an estate plan, you won’t have any control over who a judge appoints to this position. Usually it falls to your parents or other family members, even if you’re in a committed relationship. Of course, there’s no guarantee the person appointed will do what you want, and you’ll just have to hope for the best. Either that or you’ll have to make a healthcare power of attorney or other advance medical directive so you can choose your representative yourself.

Your Property

While you may not have that much property you can always ensure that what you do have will pass to whom you want it to without causing too much of a headache. If you don’t have a Will your parents, siblings, or other family members automatically stand to inherit your property. If you want it to go elsewhere, you’ll have to make a will or take other steps to make sure your wishes are met.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

According to the results of a recent survey, 4 out of every 5 professionals who routinely work with financial exploitation of the elderly believe that financial elder abuse is a growing problem.

Earlier this month, the Investor Protection Trust, a Washington-based nonprofit organization that provides financial education services, surveyed 762 securities regulators, medical professionals, financial planners, and other workers who commonly deal with elder financial abuse. 70% of those workers say that financial exploitation of Americans of 65 or older is a very serious problem. 58% of those surveyed also revealed that they either quite often or somewhat often deal with elderly victims of financial abuse.

The survey supports other data the organization has recently collected. In a prior study, the Investor Protection Trust revealed that about 7.3 million senior citizens, or about 20% of the nation’s elderly population, has already been subjected to some form of financial exploitation. This includes inappropriate investment advice, excessive fees for services, as well as financial scams.

The organization also showed that about 50% of elderly Americans exhibit at least one telltale warning sign of recent victimization. Warning signs include being confused by bill payments, feeling pressured to give away money or to make changes to their estate planning documents, as well as being repeatedly called by strangers in an attempt to get them to participate in lotteries, fraudulent investments, or other financial scams.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Issue 1: Who will make your health care decisions for you?

No one likes to think of the possibility of becoming so sick or injured that you need someone else to make your medical decisions for you. But this does happen, and when it does who has the right to make those decisions? If you’re married, the answer is simple: your spouse. If you are an unmarried couple, the question is more complicated. Your partner may not have the right to make decisions, and it will eventually fall to a court to decide. You can, however, take steps now to give your partner the right to make decisions by creating a medical power of attorney or health care proxy. Once you make this document and ensure that it complies with state laws, you can choose whomever you wish to make medical choices for you in case you’re incapacitated.

Issue 2: Who will make financial decisions for you?

In the same way that someone will have to step in and make your healthcare choices, someone will also have to be responsible for your finances and financial obligation. The same laws that apply to healthcare decisions apply the financial ones, and it is not automatically your partner who will have this right. Again, you can give your partner this right if you create a financial power of attorney that will take effect once you become incapacitated.

Issue 3: Who will inherit your property?

Cohabitating couples that have lived together for years or even decades have no automatic right to inherit from each other should be other die. The law states that unless you are married your property will pass your children, parents, siblings, or other family members who survived you. It makes no provisions for cohabitating couples. In order to ensure an inheritance you will have to create a will or other estate planning strategy to leave your partner your property.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

After a journalistic career that spanned decades, newsman Mike Wallace died several weeks ago at the age of 93. What few people know is that the combative and tenacious journalist suffered from dementia in his final years, robbing him of much of his mental acuity. Dementia makes it incredibly difficult to manage your own affairs, though there are specific estate planning steps you can take now to ensure no problems will arise if the same happens to you.

Lesson 1: Living Wills

People suffering from dementia or Alzheimer’s disease are often unable to make knowing choices. To ensure that your medical decisions are met in this situation, you can create a living will that details the kind of care you want to receive. A living Will is not the same as last Will and testament, so you must be sure to create both.

Lesson 2: Powers of Attorney

While a living Will sets out your desires, you can also create a power of attorney to give someone else the right to make decisions on your behalf. Powers of attorney are typically differentiated into financial and healthcare. This way, you can give other people the right to step in and make choices when you lose your ability to do so.

Lesson 3: Time Is a Factor

Regardless of how old you are it is important to create these estate planning documents as soon as possible. If you become mentally incapacitated you will lose your ability to create these documents, perhaps permanently.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

As part of your estate plan, you probably want to create a financial power of attorney that will allow someone else to manage your finances when you are sick or incapacitated. Here’s a brief checklist of what you’ll need to do to create this important document, though your attorney will be able to give you a complete list.

• Notebook: Keep track of what you want your power of attorney to accomplish, as well as questions you may have for your attorney.
• Education: Learn what powers of attorney can and cannot do, as well as what options you have in choosing what kind of powers the document will pass.
• Agents: Your agent is the person who will handle your finances. Come up with a list of potential agents and ask if they would be willing to serve. Have more than one in case an alternate needs to be used.
• Document: You have to create a financial power of attorney must be made in writing. Also, the document has to meet specific requirements as detailed in state law. Ask your attorney to prepare the document for you and review it to make sure you understand what it contains and why.
• Execute: You have to sign your power of attorney before it becomes effective. Schedule a time with your attorney to execute the document properly so your agent won’t be left with a useless document later.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Providing for your medical care with a medical power of attorney, should you become disabled, is an important part of estate planning.

1. What is a medical power of attorney?
The medical power of attorney is a legal document wherein you appoint an agent to act on your behalf. This agent (sometimes called a “heath care agent”) makes health care decisions for you if you are unable to make those important decisions yourself.

2. Why wouldn’t I be able to make my own health care decisions?
Most of the time, you will continue to make your own health care decisions. The medical power of attorney is only effective if you are disabled and cannot make your own decisions.

3. What do you mean by the term, “disabled?”
“Disability” does not mean that you are laid up on the couch with a bad back or a broken leg. It refers to any time period during which you are mentally unable to make health care decisions. You may be deemed disabled if you were seriously injured in a car accident, suffer dementia, or are otherwise unconscious.

4. Who do I name as my health care agent?
Typically, you would name your spouse, followed by a succession of agents to serve if the previous agent is unwilling or unable to serve. Successor agents are typically children. However, it is important that whoever is named is assertive enough to stand up to doctors and other medical professionals on your behalf.

5. What kind of decisions would my health care agent make?
Your health care agent would make the same decisions that you would make if able. Some example decisions would be: whether you have surgery, try a new medicine, or find a new doctor.

If you have any questions about the medical power of attorney, consult with a qualified estate planning attorney.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Although the financial power of attorney is not a magic wand, it is one of the most powerful legal documents you will ever sign. You are giving someone else the power to sign your name.

1. How does a power of attorney work?
Within the power of attorney, you name an agent to act on your behalf in financial matters and day to day personal business.

2. Why do I need a power of attorney?
You need a power of attorney is case you become disabled and cannot manage your property or day to day affairs. You also may want a power of attorney for convenience so your agent can handle matters if you are out of town.

3. What can my power of attorney agent do?
Your agent must follow the instructions in your power of attorney document. There will be a long list of authorized duties such as dealing with social security; caring for pets; paying bills; dealing with the bank, investment companies, and the post office; dealing with real estate and your assets.

4. What does my agent need to know?
It is imperative that your agent always keep in mind that he is acting (as a fiduciary) on your behalf and in your best interest, not his own. Your assets must be used for you and kept separately from the agent’s assets. He should keep detailed records of expenditures and income; and, he must invest prudently.

5. Do I need to be concerned about who I name?
Misuse of authority under powers of attorney is common. Children, nephews, siblings, and even, ministers, end up in jail for misappropriation of funds. It is imperative that you select a highly trust worthy agent. Other important agent qualities would be organization and strong communication skills.

If you have any questions concerning the financial power of attorney, consult with a qualified estate planning attorney.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.