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CalPERS Quick Tip | Special Power of Attorney

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For example, a niece who runs off with her aunt s money when given the power of attorney is a sign of intended abuse. The principal may not be able to monitor how transactions are made and eventually caused the agent to misuse his or her finances. When identifying the person who would represent the interest of the principal, it is important to determine a person who is trustworthy and would not betray the interest of the principal. The authority usually provided by the legal services specifically for the elderly could be categorized as a durable power of attorney. It is somehow different from the usual and normal power of attorney used. Durable simple means the agent is mandated to continue making decisions for the principal especially if the latter becomes incapacitated. The document takes effect right after the principal and attorney-in-fact have signed it, and it ends when the principal dies. 4. Springing - This legal document is created in such a way that it takes effect only after the principal has become mentally disabled. When writing the document, one has to make sure that it clearly explains how to determine the occurrence of the springing event. If you are considering getting a power of attorney, you should make sure you are appointing the right agent or attorney-in-fact (the person who would be given authority to make or execute decisions for you). One usual issue about power of attorney and appointment of agents is the way the person manages or handles finances. In cases like that, you may opt to get a durable POA that specifies a limited period when the authorization is effective. That document must also indicate the particular terms like your preference when it comes to the minimum sale price. A power-of-attorney document can also save you from hassles as well as unnecessary expenses and waste of time in certain situations. It is important that the person be able to spend much time to handle your affairs and work on your behalf. If not, you would be in trouble. Is the person easily available? Appoint an agent or attorney-in-fact who is easily accessible or available. This is to make sure he/she would always be there in cases of emergency. 

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