Thanks to scientific breakthroughs in medicine, people in the United States are living longer. With those advances, however, older Nevada residents run the risk of no longer being able to handle their finances without help at some point. For this reason, powers of attorney are important for everyone — especially for those who have reached retirement age.
A financial power of attorney gives an individual the ability to choose who will take care of his or her money matters in the event of incapacitation. This document can be either “durable” or “springing,” depending on preference. If it is durable, the document becomes effective at once when executed. A springing power of attorney, on the other hand, requires that the individual be declared incapacitated, or otherwise incompetent, by a doctor — in writing — before the appointed agent has any authority.
A springing power of attorney might make a Nevada retiree more comfortable, but it can cause delays if it is needed. It could take time for a declaration of incapacity to be made. During that time, bills may not get paid and property can languish. For these reasons, many people prefer to make these documents durable instead. The powers given to an agent can also be as broad or specific as desired.
Perhaps the most crucial part of any power of attorney is the agent. This individual should be someone who is trusted and understands the financial needs and desires of the Nevada resident giving them the authority to act. Powers of attorney are an integral part of any estate plan, but the people executing them need to be comfortable and at peace to whom they may someday be relinquishing authority over their financial lives.
Source: fool.com, “1 Document Every Retiree Should Have (Hint: It’s Not a Will)“, Gary Knight, Dec. 27, 2015