Financial Power of Attorney Planning for American Canyon

Identify the decisions you want covered

Start with the financial decisions that might need attention if you could not manage them yourself. The point is not to guess at every future circumstance, but to clarify the kinds of matters you want to discuss and the person you believe could handle them in line with your priorities.

A financial power of attorney concerns financial decisions. A health-care directive addresses health-care decisions instead, so choosing someone for financial matters does not, by itself, address who should make health-care decisions. Keeping those roles distinct can help you decide whether you are considering one planning need or more than one.

• What financial matters would you want someone to address?
• Who understands your priorities and would be appropriate to consider for this responsibility?
• What concerns would you want to discuss about the role or the decisions involved?

Consider how a financial power of attorney fits your plan

Estate planning involves coordinating documents and asset arrangements. A financial power of attorney is one part to consider in that broader picture, rather than assuming one document addresses every planning need. Think about how the financial decisions you identified relate to your assets and to any other planning documents you already have.

An alternative planning question may be whether an asset arrangement, a document, or a combination of arrangements better fits the issue you want to address. The relevant choice depends on what you want planned; the useful next step is to describe the situation and ask how the pieces may relate, rather than assuming that a financial power of attorney replaces other arrangements.

• Make a list of assets and financial records you may want to discuss; do not include account credentials.
• Note existing planning documents and questions about how they fit together.
• Keep financial decision-making and health-care decision-making as separate topics when identifying what you want the plan to cover.

Understand the limits and practical questions

A financial power of attorney concerns financial decisions, not health-care decisions. A health-care directive addresses the latter. If you want to plan for both kinds of decisions, treat them as distinct subjects and identify each one in your discussion.

A power of attorney terminates upon the principal’s death. It should therefore be understood as a planning document for financial decision-making, not as a document for directing decisions after the principal’s death.

Do not assume that every financial institution will accept a document in every circumstance. If acceptance is a concern, ask the institution what information or process it uses and raise the answer during planning. That question may affect how you prepare, but it does not determine which financial decisions you want covered.

Prepare for a focused discussion

Before a planning conversation, you may find it useful to write down the financial matters you want addressed, the person you are considering, and any concerns about the responsibility. You can also make a simple inventory of relevant assets and records and note existing planning documents. These are optional preparation steps, not legal requirements.

A helpful next step is to discuss your priorities, the decisions you have in mind, and how a financial power of attorney may relate to your other planning arrangements. Codi M. Dada Law Office P.C. provides virtual services to American Canyon clients from its Novato office.