When was the last time you looked at your durable power of attorney?
For many people, the answer is years ago. You may remember signing the document and putting it somewhere safe, but your life may look very different today. The person you chose to act for you may no longer be the right choice, your financial circumstances may have changed, or the document itself may no longer accomplish what you need it to accomplish.
A durable power of attorney is an important part of a comprehensive Florida estate plan. Having one is important, but simply having an older document does not necessarily mean your planning is complete. Reviewing it periodically can help ensure that the right person has the appropriate authority to assist you if the need arises.
What Does a Durable Power of Attorney Do
A durable power of attorney allows you to appoint someone you trust, known as your agent, to handle certain financial and legal matters on your behalf.
Depending on the authority granted in the document, your agent may be able to manage financial accounts, handle certain transactions, address property matters, and take other actions permitted under the document and Florida law.
The word durable is particularly important because it generally means the authority continues if you later become incapacitated.
Why an Older Document Can Become a Concern
Your durable power of attorney does not automatically change when your life does.
Perhaps the person you originally selected as your agent has moved away, passed away, developed health concerns, or is no longer someone you want handling important financial matters. Family relationships can change as well.
Your assets and financial life may also be considerably different from when the document was prepared. You may have purchased or sold property, opened new accounts, started a business, retired, or experienced other significant financial changes.
An older document should be reviewed to determine whether it still reflects your circumstances, your goals, and the authority you want your agent to have.
The Person You Choose Matters
Selecting an agent is one of the most important decisions involved in creating a durable power of attorney.
Your agent may eventually have significant responsibility for your financial affairs. The person you selected many years ago may have been an appropriate choice at the time, but that does not mean the same choice remains appropriate today.
Consider whether your current agent is still willing and able to serve. You should also consider whether the person remains trustworthy, responsible, and capable of handling the responsibilities involved.
Your Estate Planning Documents Should Work Together
A durable power of attorney should not be considered in isolation.
Your will, revocable living trust, designation of health care surrogate, living will, beneficiary designations, and other estate planning documents should work together as part of a coordinated plan.
For example, changes to your family, finances, or trusted decision makers may affect several documents at once. Reviewing your entire estate plan can help identify inconsistencies before they create problems for you or your loved ones.
Do Not Wait for an Emergency to Review Your Plan
The worst time to discover a problem with an important estate planning document is when your family urgently needs to use it.
If you become incapacitated without appropriate planning in place, your loved ones may have fewer options for assisting you and could potentially need to seek court involvement.
Reviewing your durable power of attorney while you are able to make your own decisions gives you the opportunity to determine who you trust, what authority that person should have, and whether the document continues to support your overall planning goals.
When Should You Consider a Review
You do not need to wait for a specific anniversary to revisit your estate plan.
A marriage, divorce, death in the family, retirement, relocation, significant financial change, health change, or change in your relationship with an agent can all be reasons to speak with an experienced Florida estate planning attorney.
Even when nothing significant has changed, periodically reviewing your documents can help you feel confident that your plan continues to reflect your wishes.
Planning Ahead for South Florida Families
For individuals and families throughout Palm Beach County and South Florida, estate planning is not something that should simply be completed once and forgotten.
Your life continues to evolve, and your planning should be reviewed along the way. A current durable power of attorney can be an important part of making sure someone you trust is prepared to assist with your financial and legal affairs if you are ever unable to manage them yourself.
Taking the time to review your plan now can help prevent uncertainty during a future emergency.
Contact Elder & Estate Planning Attorneys PA
If you are unsure whether your Durable Power of Attorney still meets your needs, Elder & Estate Planning Attorneys PA is here to help. We work with individuals and families throughout Palm Beach County and South Florida to review existing estate planning documents and create personalized plans that reflect their current circumstances and future goals.
Contact Elder & Estate Planning Attorneys PA today to schedule a consultation and make sure your estate plan is prepared for the life you are living today.