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Know this before you sign a Power of Attorney

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it would only be valid, if there are doctor or doctors which identified that the principal is indeed incapacitated. However, it may pose some problems since mentally incapacitated is defined subjectively and difficult to determine. So it is not recommended that durable power of attorney would be springing. Because it can have legal consequences, the transfer of power or the authorizing is written as a legal contract, which is shown to people before the attorney-in-fact can proceed with his dealings on behalf of the client or the principal. Often, when the attorney-in-fact is being paid, a separate contract is drafted for the payment and is not shown to other people. By this, it means that the agent you are appointing should always intend to follow your instructions. He or she should be fiduciary. Thus, that person must always act with the highest possible degree of good faith on your behalf. Your agent still has the freedom to do whatever he/she likes to do even if he/she is supposed to always make decisions for you. Another advantage of a power of attorney is its importance in making healthcare decisions. A power of attorney can also be given to people, authorizing them to refuse or allow medical care to the principal if they become incapable of making decisions for themselves. This also includes making the decision to pull the plug in cases when only a machine is keeping the principal alive. When choosing the best agent to represent you, then it may be important to consider the amount of time they can spend on managing financial and legal matters. Location. Choosing an agent who does not have to be far from the principal and the property is a better choice. Capability. It is important to consider an agent that has the ability to manage the principal s property and legal matters. It is defined as the full legal authority given to another individual to be responsible for all your finance-related affairs, including filing income tax returns and paying the bills. The agent can even sign documents on behalf of the principal. This agent is allowed to handle all the principal s finances except the assets owned by the revocable living trust. 

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