July 6, 2015
- 1. Incapacity – No one expects to have an accident, illness or other traumatic event resulting in incapacity. A Power of Attorney is critical because it allows you to appoint a trusted person to manage your finances should you become incapacitated.
- 2. Medicaid Planning – A properly drafted Power of Attorney can allow a trusted Agent to do more than manage finances. A Power of Attorney can allow an Agent to preserve your assets while also making you eligible for Medicaid benefits.
- 3. Tax Planning – A properly drafted Power of Attorney can allow an agent to file your tax returns and execute tax strategies to reduce potential gift and estate taxes.
- 4. Negate Court Interference – When a person becomes incapacitated without a Power of Attorney, a guardianship proceeding may be required. The Court may appoint a stranger as your guardian instead of a family member or friend.
- 5. Your Spouse Can’t Do It All – You may think that you do not need a Power of Attorney because