Wills, Financial Powers of Attorney, Advance Healthcare Directives, etc.
Proxy documents, legally authorize another individual to act on your behalf. This includes making decisions for you, obtaining personal private information, and even signing your name.
The most common examples are Financial Powers of Attorney and Advance Health Care Directives.
The Financial Power of Attorney, as the name suggests, gives an individual the authority to act on behalf of another regarding financial transactions.
There are two types of Powers of Attorney; “springing” and “immediate.” The difference between these two types is when they become effective. The “springing” power is not effective until the person delegating the authority has been proven to be incompetent. The immediate power is effective immediately and therefore the delegation of power is not dependent on any other event.
Almost without exception, Financial Powers of Attorney should be “immediate” and the Advance Health Care Directives should be “springing.” It is not uncommon to discover that the language in at least one of these documents is incorrect, but more often than not, the language in both documents is backwards.
To ensure that your wishes are interpreted correctly and carried out according to your plan, it is very important that your proxy documents be prepared by a professional attorney.
Not all attorneys treat the process of creating proxy documents in the same way. Sometimes these documents are drafted to simply meet the minimum legal requirements.
At Preston Estate Planning, that’s not the way we do business. We treat every client as an individual, and we ensure that their documents are drafted professionally and with the proper language.
We can help you plan for the future. To learn more, contact our office at (800) 698-6918.