When we think about estate planning, we often think about the future. But, in some cases, estate planning can help when it comes to present-day situations. For example, many people believe they will only need a power of attorney when it comes to their end-of-life care. But, powers of attorney can be used in a number of different situations, and you may have to create one when it comes to something like buying or refinancing your home. Read on to learn more about the different ways to use a power of attorney.
What is a Power of Attorney?
A power of attorney (POA) allows you to appoint a loved one to make important legal decisions on your behalf. Often, this is used in the event that you can no longer make these decisions yourself. When appointed, depending on the type of power of attorney you choose, this person will be able to pay your bills, make bank deposits/withdrawals, obtain medical records, file tax returns, buy or sell property, hire caretakers, transfer assets to trusts, and more. For the most part, people choose a loved one to entrust with this responsibility. While POAs are usually used when someone becomes incapacitated or is no longer of sound mind, they can be useful in a lot of other situations as well.
Why Would I Need One When Buying a House?
If you are buying or refinancing a house, you may end up creating a power of attorney. This is because real estate can be complex and there are a lot of legal aspects involved. You may need to create a POA in case you are unable to sign the necessary documents. For example, if you have already moved into a new house and you are no longer around to close the deal on your old house, someone can sign for you to close the deal if they are given that right in a POA. This is just one example of how a POA can help you when it comes to purchasing or refinancing a home. You may also need a POA if you are buying a car. This would allow someone to purchase a car in your name, or allow the dealership to transfer the title from their name to yours, without you having to be present. But, it is important to be careful and consult an experienced estate planning attorney when it comes to making these decisions.
If you are interested in creating a power of attorney, contact our firm today.
Contact our Firm
The Lauterbach Law Firm is proud to serve clients throughout Rockland County who are faced with legal matters related to estate planning, real estate, foreclosure defense, landlord-tenant law, business law, and criminal defense. If you require the services of an experienced team of attorneys, contact The Lauterbach Law Firm today to schedule a consultation.