Monday, November 26, 2012

The Proper Use of a Durable Power of Attorney


It is not always possible for everyone to do their own business, and in many cases will need the help from another person to act on their behalf. In this case, they make use of a durable Power of attorney, which allows them to nominate a person they trust to do their business on their behalf. This particular person will then act in the same way, as they would have if they were the owner of the business. You have to, really understand what the word "durable" means in this case, which is that this person you are nominating will only act on your behalf when you cannot do it anymore. This normally happens when you are seriously ill, or you were in an accident and cannot work for a certain period.

As a business owner, there can probably be nothing worse than knowing you are ill and you have nobody to run your business. The amount of money you can loose will contribute to you not recovering as fast as you would have, when knowing you have somebody reliable looking after your affairs. If you nominate someone via a durable Power of Attorney, you will be the principle and the person you decide upon will be the agent. If something happens to you, your agent can sign on legal documents the same as what you would have done. This particular document will not come into action until the day that you cannot see to your business, of course only due to illness or an accident.

The law actually states that the person you do decide upon to act on your behalf must have integrity and be honest. They will not allow you to nominate someone who will do fraudulent business with your money, which protects business wise. The agent must act in such a way that whatever they do will be in the best interest for your company as well as for yourself. With a durable Power of Attorney, you only give your agent the right to act on your behalf, so if you agree to an amount, which you will pay your agent, you need to set this up in another written contract apart from this form.

There are some institutions, which will accept a verbal durable Power of Attorney, but when it comes to places like your hospitals and banks, you can be sure that they will expect this agreement to be in writing. This is mainly to protect your interests as well as theirs. Imagine you cannot look after yourself anymore and you are dependable on someone else, but not the agent you want to act on your behalf and this other person is trying to steal your money by indicating you have a verbal agreement. The amount of assets you can loose through such an act is endless, and therefore the written agreement is better, as it will help you the day when you cannot help yourself or talk for yourself.

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