This is a legal document in which you appoint another person to act on your behalf in the event of you becoming mentally incapacitated. It will allow that person to do such things as your banking affairs or even transferring property. The Enduring Power of Attorney only takes effect upon your mental incapacity.
A power of attorney can also be done to take effect immediately. The attorney can provide limited powers, be for a limited time, or can be all encompassing.
Q. I have my adult child on my bank account. Is this recommended?
It depends upon what your intentions are and what you hope to accomplish by doing so. Historically, it was common for an older person, especially where their spouse was deceased, to have a son or daughter added to their account so there would be access to the account in the event of death.
However, if there is more than one child and death occurs, is the money in the joint account to go to the other person on the account as a gift, or is it a part of the estate to go to all the children? The answer really lies in the intention of the person who died if it can be determined. Generally, the Courts stat in such cases, unless there is strong evidence to the contrary, the money in the account, despite the fact that one child’s name is on it, is really a part of the estate. The child becomes a trustee of the money and must hold on to same for the benefit of the remaining children. The opposite presumption is true for a surviving spouse. It is presumed the surviving spouse owns the money if the surviving spouse is on the account.
The banks are legally entitled to release the money to whoever’s name is on the account. Thus, whether or not you trust your child will hold the money for the benefit of your other children is an important consideration. It is important you know in advance what your intentions are and set up you banking accordingly.
You may leave the money in an account in your name only, however, it then becomes part of your estate and is subject to probate fees. Probate fees can be substantial if there is a lot of money. If you are not sure what to do, seek legal advice.
Advanced Health Care Directives
Advanced Health Care Directives are sometimes referred to as a living will. It allows you to appoint a decision maker to give instructions to health care professionals about what medical treatment you want or do not want to receive should you not be in a position to give you consent. It also allows you to give your consent to use your organs for transplant if you are fatally injured, or any other specific medical direction you want to give