A durable financial power of attorney is an important tool in your estate planning toolkit. The word “durable” means your financial power of attorney will continue to be valid even if you become incapable of making financial decisions on your own, providing protection for your financial life in the event of a tragedy.
But if a durable financial power of attorney doesn’t end with your incapacity to make financial decisions, when does it end?
A Durable Financial Power of Attorney Ends at Death
You trust the person you’ve appointed as an agent under your financial power of attorney, but unfortunately, they cannot continue to manage your financial affairs after your death. A durable financial power of attorney ends at your death, and this means that your agent will no longer have the power to make decisions about your finances or manage your assets.
If you want your agent to be able to do all these things after your death, you have to appoint them your executor in your will. An executor takes care of managing your estate after you die, including things like paying off your debts and distributing your assets to your beneficiaries.
Other Ways to End a Durable Financial Power of Attorney
A durable financial power of attorney isn’t set in stone, which means there are other ways it can end:
You can revoke it. Just like you had the authority to designate someone as your financial power of attorney, you also have the right to revoke, or end it any time you want, as long as you aren’t incapacitated to the extent that you can no longer make legal decisions on your own.
There are many reasons why you might want to revoke a financial power of attorney. You may not need the particular assets covered by the power of attorney to be managed anymore. Or perhaps you obtained a divorce, and your agent is your ex-spouse.
The courts can revoke it. A court has the power to revoke your financial power of attorney. This can happen if, for example, the court finds that at the time you signed the document you weren’t mentally competent to make such a decision.
There is no one to act as your agent. You appointed an agent in your power of attorney, but what if the person you appointed dies or becomes incapacitated and can no longer make decisions on their own? If for any reason there’s no one to act as your agent, your financial power of attorney will end. You can avoid this by appointing a successor agent in your power of attorney.
Need a Financial Power of Attorney?
A durable financial power of attorney is an important document that can give you the peace of mind that comes from knowing someone you trust will be able to step in to manage your financial affairs if you’re no longer able to. Speak with an experienced estate planning lawyer at Parks & Jones today to see how they can help.
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