A.
DURABLE POWER OF ATTORNEY
We all know that a power of attorney is a legal document we sign authorizing someone to act on our behalf when we cannot act. Usually, it applied when we are going to be out of town and no available to provide a signature of decision. Real estate escrow's and business deals see powers of attorney as a normal document. The drawback of a normal power of attorney is that it terminates when the grantor (that's the person that signed it) dies. We can't time our death, and the existence of a power of attorney that lived beyond our death would be beneficial to complete the transaction. The legislature has acted to create a "durable" power of attorney whose power extends beyond the grantor's death. It has become one of the most powerful estate planning tools. Usually the grantee (that's the person who is granted the power to act) is the same person that is nominated as the executor in the grantor's will or the trustee in the grantor's living trust. When someone dies there is a myriad of small details immediately following their death that requires attention. These details usually include dealing with the bank. Depositing checks and paying the decedent's bills is difficult with the assistance of a court appointed executor or administrator. It takes several months for such an appointment and in the meantime there are bills to pay and incomes check to be deposited in the bank account. The durable power of attorney allows their representative to immediately perform those functions. One of the benefits of a living trust is that the assets of the trust avoid probate. Unfortunately, not all the assets get transferred to the trust during the decedent's lifetime. The assets not transferred to the trust must be probated in order to transfer title. The reason is that the decedent is not available to provide a signature to transfer the title of the asset. The solution is the durable power of attorney which lives beyond the death of the grantor and can be used to transfer title of those assets to the trust and avoid the cost and delay of probate. The document is usually held in the attorney's office and can be released upon the direction of the grantor. If the grantor was out of town the grantor could authorize the attorney to release the durable power of attorney to the grantee and the grantee could provide the missing signature to complete the transaction. A conservatorship is a legal proceeding where an individual can no longer care for his financial dealings due to mental or physical disability. It empowers someone else to run their business affairs. It takes several months to have a conservator appointed. In the meantime the grantee of the durable power of attorney can be used to look after the individual's financial affairs. The durable power of attorney is a very powerful tool for lifetime financial and business affairs and estate administration affairs. The key is appointing the right people to be your representative. Talk to your lawyer about this powerful tool. For more information or for a CONFIDENTIAL, NO COST, NO OBLIGATION visit in your home please contact Rev. Dr. Randall F. Mueller, Estate Planning Counselor, Good Shepherd Lutheran Home, The Good Shepherd Fund, 23666 Via Navarra, Mission Viejo, CA 92691-3636, 714-951-6211.
NOTE:
Always contact your attorney or legal counselor before taking any action.
B.
DURABLE POWER OF ATTORNEY FOR HEALTH CARE
WOW! What a name! What's a Durable Power of Attorney for Health Care Decisions? First of all, what's a durable power of attorney? A power of attorney is a written instrument that allows one person to make legal decisions for another person. A power of attorney terminates when the grantor (that's the person signing or granting the power) dies. Fortunately, the legislature passed a statute authorizing a durable power of attorney which allowed the authority to stay in effect after the grantor died. This has become a powerful estate planning tool to assist the grantee (that's the person who was empowered by the power of attorney) in dealing with bank accounts, transfer of title to some assets and other things that would otherwise require a court appointed executor or administrator. The good news is that the legislature has authorized a similar grant of power for health care decisions. It applies to the situation where the patient is unconscious or under anesthesia and the doctor must have a qualified decision on the next procedure. The normal form not only grants the decision making authority to another individual but it also names at least one back up if the first nominee is not available to make the decision. In the married couple situation, the obvious appointee would be the spouse. What if the couple was involved in a traffic accident and both of them were not conscious. If your form had an alternate decision maker the problem would be solved. The form with certain limitations would be very helpful for children where the child is on a vacation with friends or the child spends time with the non-custodial parent or grandparent. The custodial parent should attach a copy of the court decree to the form to provide evidence of authority to act on behalf of the child. Obviously an emergency room physician has legal authority to provide sufficient medical care to a mortally injured person to save their lives. However, there are many situations where the patient is in surgery and additional procedures would be medically prudent but they are beyond life threatening. These procedures could eliminate the need for future surgery or shorten the recovery time. Now is the time to discuss with you legal counsel the "ins" and "outs" of a Durable Power of Attorney for Health Care Decisions for you, your spouse, your children and the people you care about. For more information or for a CONFIDENTIAL, NO COST, NO OBLIGATION visit in your home please contact Rev. Dr. Randall F. Mueller, Estate Planning Counselor, Good Shepherd Lutheran Home, The Good Shepherd Fund, 23666 Via Navarra, Mission Viejo, CA 92691-3636, 714-951-6211. NOTE: Always contact your attorney or legal counselor before taking any action.