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Why a power of attorney is an important part of an estate plan

On Behalf of | Nov 22, 2021 | Estate Planning |

People in Georgia own and acquire various property throughout their lives. They may buy homes and other real estate, vehicles, jewelry and other tangible property. They may also have bank accounts, retirement accounts, investment accounts and other financial accounts as well. These are assets that they can control and use how they would like while they are living. However, everyone passes away at some point in time and they cannot take any of these assets with them when they die.

That is why it is important to have a good estate plan. People need to plan where their property will go when they pass. One of the main parts of an estate plan is a Will, which is the document which states who will receive their property. However, prior to actually dying there may be a period of time when people are incapacitated. During this period of time they are not able to make any decisions about their assets, make payments on bills and other obligations or make any other financial decisions.

These decisions must be made though and as the person is still alive they are the ones who are still legally able to make those decisions. Estate plans should also include the appropriate document to allow another person to make these decisions or make financial payments on their behalf for situations when they are incapacitated. People can do this through a durable power of attorney.

Authority granted through a power of attorney

A power of attorney can grant other people the authority to buy and sell real estate, enter into contracts, make bank transactions, operate businesses, file taxes, settle claims and make many other financial transactions or decisions.

Many people in Georgia have a Will and that is what they think about when they think about estate planning. However, there are other documents that should be included in the estate plan. One of these documents is a power of attorney which allows others to take care of their finances when they are incapacitated. Experienced attorneys understand how to make a good estate plan and may be able to guide one through the process.