One of the most common parts of an estate plan in Minnesota is a Power of Attorney. Considered a “pre-death” document, a Power of Attorney allows you to appoint a third-party to act on your behalf in the event that you are unable to make your own decisions.
Minnesota Power Of Attorney Overview
In general, a Power of Attorney in Minnesota establishes certain guidelines to handle your financial matters. In the event that you are incapacitated or otherwise unable to make these decisions, then your “Principal” and “Attorney-in-Fact” will be able to oversee and execute these matters for you. Common financial situations that are handled through a Power of Attorney include:
- Bill pay;
- Real estate management; and
When you create your Power of Attorney, the guidelines you establish can be as specific or as general as you want. Some people choose to give broad coverage over all of your affairs through a “General Power of Attorney.” In other situations, you may choose to place limits on the authority of your attorney-in-fact.
Why Draft A Power Of Attorney
Drafting a Power of Attorney is a very important part of your Minnesota estate plan. With this document, you can make sure that your financial affairs will continue to be taken care of in an appropriate fashion. With a Minnesota Power of Attorney, you can grant power to:
- Use your resources to cover your expenses;
- Manage your retirement funds and other investments;
- Handle any litigation;
- Purchase or sell insurance policies;
- Oversee your business and expenses;
- Prepare and file your taxes; and
- Handle your real estate
Without a Power of Attorney, these important financial matters may not be dealt with according to your wishes, causing unnecessary burden upon you and your family.
Some people fear that a Power of Attorney means that they will no longer be able to make decisions on their own. Even if the Power of Attorney is executed, there is often a shared responsibility in this decision making process. Remember, it is your choice how much power to grant someone in your Power of Attorney.
Limitations Of Powers Of Attorney
A Power of Attorney is a powerful and important document, but it is only one part of an estate plan. It does not establish any guidelines for your health care decisions, nor does it deal with the care of any children you may have. When creating a Power of Attorney, many people also choose to include a Health Care Directive and a Last Will & Testament as part of a complete estate plan. With these three documents in place, you afford your wishes the ultimate protection.
You may also choose to place your own limitations within the Power of Attorney. This document does not necessarily give someone complete authority over all of your affairs. Ultimately, you will choose how much authority to give, based on your comfort level.
A Power of Attorney can seem like a very complicated process. When you are ready to establish or revise your Minnesota estate plan, our lawyers are here to help you. Our experienced attorneys will guide you through the execution of your Power of Attorney, making sure you are comfortable with the outcome. Our estate planning services are affordable, and often available for a flat fee.
Contact the Brown Law Offices, P.A. today for a free consultation. Call (763) 323-6555.