There are ordinary powers of attorney and durable powers of attorney. For both types, you can have both a health care powers and financial powers.
Attorney Tom Olsen: There are two types of Power of Attorneys. There is an ordinary Power of Attorney, and there is a durable Power of Attorney. With an ordinary Power of Attorney, it ends when somebody passes away. It ends when somebody becomes incompetent for example they have Alzheimer’s. It is though the document is ripped up and cannot be used anymore. A durable Power of Attorney also ends when somebody passes away, but a durable Power of Attorney stays in effect when somebody becomes incompetent. That’s a durable aspect to a durable Power of Attorney. Now as far as a durable Power of Attorney is concerned, there’s two types. One is for healthcare; one is for financial affairs. When Chrissy and I do wills for people, we typically do four documents. We do the will itself, we do a living will declaration, we do a healthcare Power of Attorney, and we do a financial Power of Attorney. So Rose having Power of Attorneys is very important we do both the health care and financial. We fill are very important documents for everybody to have.
Chrissy: Absolutely and Tom, especially because people think about a will and there of course very concerned as to who’s going to be in charge if they pass away. And I think that people are just really that ‘aha’ moment when we say to them ‘yes.' Very important but it’s equally as important to think about who would be there to help you and be in charge if you are alive but incapacitated, and that’s exactly what these Power of Attorneys do.
Attorney Tom Olsen: Well that’s a great point. Now Rosie other thing I want to say about a financial Power of Attorney is that there is last-minute planning that can be done to preserve and protect some of your wealth from nursing homes and Medicaid, okay? So if you are concerned about spending all your money on nursing homes and Medicaid or you have elderly parents are, well there is last minute planning that can be done to protect some of their wealth. To do this last minute planning, it requires that you have a good financial durable Power of Attorney. When I say good what do I mean? Let me tell you what I don’t mean. I don’t mean one that comes off the office supply store form. Okay? You need to have a good financial durable Power of Attorney. I do recommend an attorney to do it for you. Of course, we’d be happy to.
Chrissy: Absolutely. It must meet Florida law requirements, of course. And the other thing to add Tom to that is, as you know oftentimes husband and wife also again don’t realize. So again husband and wife even with the Medicaid planning must have a Power of Attorney for each other.
Attorney Tom Olsen: Yes. Most husband and wives they own everything jointly in that if the means of the husband becomes incompetent the wife has got control of those joint assets. But even married couples have assets in their individual names like IRA’s, retirement accounts for one case, social security. So even married couples need to have these financial durable Power of Attorneys between themselves.
Chrissy: Absolutely, because if a spouse is alive but incompetent, the other spouse cannot speak to that about the 401K or any retirement account that is in their spouse’s individual name. They cannot talk to them without the Power of Attorney.
Attorney Tom Olsen: By the way, when we do Power of Attorneys for you, we also typically we do a first, second and third choice, so that if you’re a married couple you or each other’s first choice, second choice of typically child, third choice of typically a child. Yes, you can have more than one child appointed under powers of attorney. Rose, again we’d be happy to help you and your call overall office next week at 407-423-5561.
Call or text Chrissy at 407-808-8398 if you need a lawyer or attorney in Central Florida including Orlando, Winter Park, Windermere, Daytona Beach, The Villages, Melbourne, Altamonte Springs, Lake Mary, Longwood, College Park, Bay Hill, Oviedo, Sanford, DeLand, DeBary, Deltona, Leesburg, Clermont, Thornton Park, Baldwin Park, Ponce Inlet, New Smyrna, Ormond Beach, St. Augustine, Kissimmee. Olsen Law Group in Orlando at 407-423-5561.
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