Estate planning generally gives estate owners and beneficiaries a sense of peace. There are certain documents that must be included to have a well-executed plan for Texas residents. Power of attorney is one of the most vital documents to include in an estate plan.
For those who are not familiar with a power of attorney, it’s a written instrument granting someone authority to take care of finances in case the grantor is no longer capable of doing so. The grantor can give a person the authority to act on their behalf as long as it’s for their best interest. Furthermore, the individual has the trusted duty of protecting the grantor’s assets and finances. Even if the power of attorney is not around or for some reason is unavailable, the grantor can still make decisions for themselves.
In spite of the amount of authority a power of attorney is given, the grantor still retains his or her rights and can terminate the individual at any time. This document can be created without ever having to enter a courtroom. Not having a power of attorney may result in a substantial loss of the estate following a death.
A power of attorney allows someone to act on the grantor’s behalf. They are given the opportunity to perform trusted tasks and do what the grantor would normally do if they were able to. There are different types of powers of attorney available to Texas grantors. Learning about these documents can help individuals make the best financial decisions and execute a thorough estate plan.
Source: reflector.com, Financial health: Estate planning, No author, Jan. 18, 2014