When you draft a Will and Trust, you will draft up a lot more documents than just those. Some of the more important documents you will have to create include the Powers of Attorney and Durable Powers of Attorney. Many people are confused between the Powers of Attorney and Durable Powers of Attorney, which is why these documents can be unintentionally left out of the estate planning process. Therefore, familiarize yourself with the importance of each document and ensure your plan has them.
Power of Attorney
A Power of Attorney gives a principle individual or agent the power to act on your behalf. This individual can act as the principle in certain affairs and you can set limitations with a Limited Power of Attorney if needed. This can be used for not only your personal estate, but your business as well.
Durable Power of Attorney
The Durable Power of Attorney addresses the weaknesses found in the traditional Power of Attorney. This goes into effect if you were to become incapacitated and during that time the agent you have listed will act on your behalf. Since 1950, more states have allowed these documents for individuals and business owners so that they can protect their estate and assets during times of incapacitation.
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