Many people believe that a power of attorney is only useful in the event of incapacitation. This is a common misconception. There are a lot of different reasons you may need to create a power of attorney, including when it comes to making large purchases like a home or a car. Read on to learn more about when you may need to create a power of attorney for present-day purchases.
What is a Power of Attorney?
A power of attorney (POA) allows you to give another individual the right to make certain legal decisions for you. Often, this is necessary when someone becomes incapacitated or is no longer of sound mind. For the most part, this responsibility is given to a close friend or family member. When appointed, this person can pay your bills, make bank deposits/withdrawals, obtain medical records, file tax returns, buy or sell property, hire caretakers, transfer assets to trusts, and more, depending upon the type of power of attorney created. All of that being said, you may need a POA when it comes to making big purchases that have legal aspects to them.
Purchasing or Refinancing Your Home
Sometimes, powers of attorney are created when it comes to making a large purchase. Some examples include purchasing or refinancing a house. You may also need one if you are buying a car. When buying a house, there are often complex transactions and in some cases, buyers, sellers, and borrowers are unable to finish the deal for a variety of reasons. In the event that you are not able to sign the documents needed to close your real estate deal, you can have someone else sign for you, if they are given that right in a POA. Similarly, if you are buying a car, you may create a power of attorney so that the dealership can transfer the title to your name. A POA may also allow a loved one can purchase a car in your name. It is important to be careful when creating your power of attorney. You should contact an estate planning attorney to ensure that you do not give too much/ permanent power to another individual without intending to.
If you are interested in creating a power of attorney, reach out to our firm to speak with a knowledgeable estate planning attorney.
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Sometimes, divorce, family, and estate matters are difficult to navigate. Fortunately, they do not have to be with the assistance of a compassionate, knowledgeable attorney who is willing to guide you every step of the way. If you need a seasoned firm to help you with any divorce, family or estate-related matter, please do not hesitate to contact Collis, Griffor & Hendra today to schedule a consultation.