Tag Archives: medical power of attorney

What You Really Do and Don’t Need from Your Estate Planning Attorney

What You Really Do and Don’t Need from Your Estate Planning Attorney

What You Really Do and Don’t Need from Your Estate Planning Attorney
NOVA Estate Lawyers – Leesburg, VA

Meeting with an estate planning attorney at various stages or milestones throughout your life can save you – and your heirs – a substantial amount of money and headaches, and ensure that your wishes are carried through in the event that you are disabled by illness or injury, and following your death.

Here are two things that you really do need to put into place with your estate planning attorney, and one that you may not:

You DO Need to Assign Powers of Attorney
Everyone DOES, however, need, and should have, a financial and medical power of attorney. Thinking about death is scary, but being under a medical or other disability without a plan in place as to who you trust to manage your assets, pay your bills, or make your medical decisions for you is even scarier.

Without an assigned attorney-in-fact (sometimes referred to as “an agent”) to manage your financial affairs and medical decisions (including end-of-life decisions), the courts may be called upon to decide, and could select a person that you may have never wanted in those roles. It is also far more expensive to go this route than to have powers of attorney drafted and signed in advance—about 10 times more.

You DO Need a Standby Guardian
When individuals have children under the age of 18, they need a Designation of Standby Guardian that appoints a trusted friend or family member to wait “on standby” in case they are needed to care for a child or children should the parent suffer a severe illness or injury that does not kill them but prevents them from being able to care for the children during a period of recovery.

Not Everyone Needs a Trust
“Many people coming to see me for estate planning services for the first time are confused about whether they really need a Trust,” according to attorney Patricia E. Tichenor, managing attorney of the Law Office of Patricia E. Tichenor, P.L.L.C. “Trusts can be very useful, but they are also very expensive and require additional steps after you sign to fund them or re-title your assets in the name of the Trust.”

With the current Federal death tax “credit” (sometimes referred to now as “the allowable amount”) being more than $5.46 million and subject to annual cost of living adjustments, meaning you owe no additional death taxes to the I.R.S. if your estate is less than that amount, there is a lot less pressure on individuals to use Trust Planning for tax reasons. Of course, some States have adopted their own separate state death tax provisions which may still result in a tax being owed by an individual’s estate. In addition, some States have very costly probate taxes (i.e., California), which make the use of Trusts absolutely necessary.

This is why it’s very important to use an attorney licensed in the State where you reside; one who is very familiar with both Federal and State tax death tax laws. Moreover, if the beneficiaries of your estate are residents of a State that does not have an inheritance taxes, you may then only need a well-written Last Will and Testament rather than a Trust as part of a comprehensive estate plan.

Non-Probate Planning
Along with your Will, you do need to get guidance from your attorney on the pros/cons of utilizing non-probate planning, which means that you by-pass your Will and instead designate beneficiaries by name as a payable on death or transfer on death beneficiary on your bank accounts, insurance, retirement funds, etc., to avoid probate altogether. This is call non-probate planning, as these assets will never pass through your Will, and therefore, will escape probate taxes.

Contact Your Estate Planning Attorney
If you do not have powers of attorney in place or if what you have is more than five years old, we strongly recommend that you meet with your estate planning attorney to set them in place immediately. You never know when illness or an accident will strike, nor do you know the impact it will have on your family or children if you have no plan or an outdated plan in place.

We, at the Law Office of Patricia E. Tichenor, P.L.L.C., will be glad to help you with any legal advice or documents needed to ensure your estate’s security. Contact Northern Virginia attorneys Patricia E. Tichenor and Camellia Safi today to set your appointment.

Choosing a Power of Attorney

Choosing a Power of Attorney

Choosing a Power of Attorney
NOVA Estate Lawyers – Leesburg

Quickly defined, a Power of Attorney (POA) is a powerful estate planning tool that allows you to appoint a spouse, trusted family member, or friend to assist with handling your financial and medical affairs during a period of disability when you might not be able to do this for yourself. This person may be referred to as your attorney-in-fact or agent. Your agent may be given these powers immediately the day you sign your POA, called non-springing, where you believe any delay to obtain a finding of disability by a doctor would be create greater problems or, instead, as springing powers granted only when one or two licensed physicians determine in writing that you no longer have the capacity to manage your financial or medical care decisions.

A Power of Attorney is a binding legal agreement that must be put into writing, witnessed, and notarized to become valid. For purposes of a financial POA, you must also make it clear, in writing, whether you are giving your agent permission to access and handle all or only some of your accounts for the POA to hold up in court.

You do not have to choose the same person as your agent for financial and medical matters; however, they do need to work together to make decisions on your behalf, according to your wishes. For instance, if you need medical treatment, your financial POA must work together with your medical POA to disclose financial information, fill out forms, or provide funds.

What’s important to keep in mind is that, absent a POA, if you become disabled and no longer have the capacity to handle your finances or make your own medical decisions, there will be delays and greater legal expenses incurred for a member of your family (perhaps even someone you would never choose for the job) to petition a court to be appointed Conservator of your assets or Guardian of your person. It is not unusual even in an uncontested matter for the costs to equal ten times the amount it would cost to simply retain an attorney to prepare a well-written POA to address these matters now before the worst happens.

Choose the Right Person for your Power of Attorney

Choosing the right person is of paramount importance. Select someone you can trust, who has your best interests at heart. Do not select someone who has had legal issues in the past or a person with whom your family does not get along. You may want to discuss your choice of person with your family before signing any documents, but this is not necessary. There are, of course, exceptions to this general rule, including same-sex couples and unmarried couples who may want their partner in the driver’s seat even if their family does not like or approve of the partner.

It is absolutely critical that you designate a person who is capable of handling your affairs and ensuring that the provisions of the POA you sign do not open the door for abuse by someone to benefit himself or herself over (which you should be their first priority) as well as your other family members by engaging in self-dealing behavior with your assets. They must fully understand their duties and be committed to taking them seriously. It is, therefore, recommended to talk to the person(s) you designate to discuss what you expect, and disclose the scope of your affairs before signing any documents. Note whether this person will charge a fee for their services; family members generally do not, but professionals like accountants and attorneys usually do.

You may also want to select a second person to serve as your secondary Power of Attorney in the event that your first choice cannot or will not perform their responsibilities, or passes away.

What if I Want to Change my Power of Attorney?
You may at any time change your assigned Power of Attorney by using a Revocation of Power of Attorney document and creating a new POA document, as a new POA document typically provides for revocation of all prior documents upon signing it. Shredding your older POA after signing a new one is absolutely critical to ensure that only the most current POA is found and utilized in the future.

Consult Your Attorney

Selecting your Power of Attorney may be one of your most important life decisions, so your choice should be considered carefully. Attorneys Patricia E. Tichenor and Camellia Safi at the Law Office of Patricia E. Tichenor, P.L.L.C., specialize in Estate Planning issues and can assist in creating the legal documents you need. Please contact us today.

The Law Office of Patricia E. Tichenor, P.L.L.C.
Professional Legal Services or Legal Representation
(703) 669-6700

Contact

  • High quality service with both personal and a professional touch. I would highly recommend their services, they helped prepare my estate in the event of my demise. They also prepared the necessary documents to complete my wife's estate after her passing, both with outstanding results. - Jim D.
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19