Understanding the Difference Between a General Power of Attorney and a Durable Power of Attorney
Many of our estate planning clients know that they need a last will and testament or a trust agreement to create their legacy at the time of their passing and ensure their estate goes to their intended loved ones. When they start to work with our South Carolina firm, however, we let them know South Carolina estate planning is so much more than preparing for the end of life. An extremely important consideration and part of their estate plan is to make sure they have their advanced directives in place.
Advanced directives are lifetime planning tools that can help you be protected in the event of a sudden crisis resulting in incapacity, or the inability to make decisions for yourself. One of the most important planning tools is the power of attorney. This legal document enables you to choose your own decision maker, also known as agent or attorney-in-fact, to be able to act for you in the event you cannot make decisions for yourself.
Your agent will have a broad range of powers. These powers can include, but not be limited to, any of the following:
- Make bank transfers
- Receive your monthly paycheck and other monies owed to you
- Pay your bills, including your mortgage
- Open a new bank account
- Sign for you in a real estate closing
- Pick up your kids from school
- Make your healthcare decisions
There are even instances where you might want your agent to act on legal matters for you such as:
- Create a trust agreement
- Make gifts of your property for less than fair market value
- Make gifts for the annual exclusion amount
- Apply for government benefits
Before taking any action it will be important to discuss this with your South Carolina estate planning attorney so she can discuss each power with you.
Unfortunately, not all powers of attorney are created equal and you need more than just a general power of attorney or power of attorney to benefit from making this document. As a part of your estate plan, your estate planning attorney needs to create a durable power of attorney for you. Although this may sound like a simple matter, without it, your planning may fail when you need it to work.
The durability provision of your power of attorney, which makes it a Durable Power of Attorney, means the legal authority you give your agent will survive you. In other words, this means it can be used in the event you become incapacitated. While a power of attorney, durable or otherwise, cannot be used at a time when the creator is no longer alive, the durability provision is key to ensuring it can be used at a time when you can no longer act for yourself.
We are your local, experienced, South Carolina law firm! At Jabber & Isaac, we are dedicated to providing the best legal counsel in a caring and compassionate way. If you are looking for a premier law firm in the Midlands area of South Carolina, look no further than Jabber & Isaac. To learn more about our firm, we encourage you to contact us today to schedule an appointment to meet with one of our attorneys.
