Power of Attorney Case Study
As financial advisors, one of our main priorities is seeing that our clients have a sound estate planning strategy in place that makes sense for their family. A critical component of an effective strategy can be having a power of attorney named, in case you become incapacitated or incompetent.
If you become mentally or physically compromised for a period of time, and do not have a power of attorney, no one will be able to manage your financial or legal affairs. We recently encountered a situation just like this with a client becoming ill and unable to make decisions for themselves. His significant other relied on him and a portion of his income to maintain their daily life. Luckily in this situation, the significant other was named as his legal power of attorney and was able to manage his affairs and pay the necessary bills on time. It could have been a very unfortunate and unpleasant experience for both of them if our client had never named a power of attorney.
Establishing a power of attorney helps ensure that your loved one can handle your financial affairs for any length of time needed. If you need to update or create a power of attorney, please reach out to your attorney. You may also be able to create one online using a website like LegalZoom. We would be happy to discuss this further with you and refer you to an estate attorney if you don’t have one.
The Pitti Group Wealth Management is not a legal or tax advisor. Be sure to consult your own tax advisor and investment professional before taking any action that may involve tax consequences. This case study is hypothetical and for discussion purposes only. It is not intended to represent any specific return, yield or investment. Individual experiences referenced above may not reflect the future experience of any one client. The planning process discussed may not be suitable for your personal situation, even if it is similar to the example presented. Past performance is no guarantee of future results. Investing involves risk including the possible loss of principal.