Why a Power of Attorney is as Important as a Will

Oftentimes people are very concerned about making sure that they have a will but do not think about a power of attorney. While it is an important part of an estate planning process, and is critical if you have specific goals and desires on how you would life your life’s savings distributed upon your death, without one your closest relatives will still receive your assets under the intestate laws. If you are married, this means your spouse. The state does not take your assets unless and until there are no living relatives.
A power of attorney, however, has no fall back provision. If you do not have a power of attorney when you need one, your loved ones will have to petition the court and ask to be appointed as your guardian. This can be an expensive and time consuming process. A power of attorney, unlike a will, is a document that takes effect while you are living. It gives power to whomever you choose to handle your financial affairs, including paying your bills, signing checks, even selling your property. You can use a power of attorney while you are still capable of handling your affairs but are unavailable or you can use it solely in the event that you become you incapacitated and are no longer able to handle your affairs. Some people will use one if they are out of state and need to sell their house. They can designate a power of attorney to handle the transaction for them at settlement. A power of attorney can specify what rights and power you give the other person and it can be limited to specific things.
It is a very powerful, but often overlooked document. You should trust fully the person you designate as it can be abused. You can revoke it in writing at any time. It can be used for many different reasons. If say, for example, you have a child in college and you want information on their account with school or grades, you can talk to your child into signing a Power of Attorney to allow you access to this information. So many parents are frustrated when they pay college bills and yet the school will not even tell them the balance due. It is a very useful tool in the event of an unfortunate and tragic accident that does not result in death. If the breadwinner is suddenly not available, rather than have to file a petition and wait for court, a Power of Attorney will enable the spouse to handle all the affairs, negotiate checks, obtainformation on the mortgage and other bills that may only be in the other person’s name.
The cost of a Power of attorney is very inexpensive (approx. $ 100) compared to the cost that will be incurred if someone does not have one when it is needed (thousands). It is something to think about to protect yourself while you are living or assist your loved ones.

For more information, visit us at: /Estates-And-Probates/Power-of-Attorney-Or-Health-Care-Directive/

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Wills for Heroes

Bucks County has several upcoming “Wills for Heroes” events. This is a program in conjunction with the Pennsylvania Bar Association that provides free wills, living wills, and powers of attorney to first responders and their spouses/significant others. Appointments are required and can be made on the Pennsylvania Bar Association website. Each appointment is for one hour. At the conclusion of the appointment, each participant will have their final, notarized documents to take home with them. If a spouse or significant other is also participating, their appointment will be immediately following that of the first responder. The program is made possible through the time of volunteers including attorneys, reviewers and witnesses.

Upcoming dates and locations for events in our area are as follows:

Saturday, April 5, 2014 – Bucks County Public Safety/Emergency Services Training Center in Doylestown, PA

Saturday, April 12, 2014 – Northeast Regional Campus of the Community College of Philadelphia

Saturday, April 26, 2014 – Community Fire Company #1 in Riegelsville, PA

Saturday, May 17, 2014 – Richlandtown Fire Company in Bucks County, PA

Click here for more information on Wills for Heroes.

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Elective Share

It is possible for a spouse intentionally left out of the other spouse’s will to still receive a share of the estate in the event of death. Pennsylvania law provides for an “elective share” pursuant to 20 Pa. C.S. 2203(a). This law provides that if a person is still married at the time of their death with no divorce pending, the surviving spouse can elect to receive 1/3 of that person’s estate. There are items that are excluded from the estate instances where an elective share will be applied. 2203(b) states the following exceptions: (1) any conveyance made with the express consent or joinder of the surviving spouse; (2) the proceeds of insurance, including accidental death benefits, on the life of the decedent; (3) interests under any broad-based nondiscriminatory pension, profit sharing, stock bonus, deferred compensation, disability, death benefit or other such plan established by an employer for benefit of its employees and their beneficiaries; (4) property passing by the decedent’s exercise or nonexercise of any power of appointment given by someone other than the decedent.

To simplify, a surviving spouse cannot receive any portion of something that they already agreed to give away by way of previously consenting to it. As it relates to subsections (2), (3) and (4), accounts that have a beneficiary designation will pass to the named beneficiary. Additionally, the surviving spouse waives the right to seek other items they may have been entitled to if they choose to exercise the elective share. The surviving spouse must reduce to writing their intent to exercise the elective share and timely file with the court. Either spouse may waive their right to exercise the elective share before or during the marriage or even after death of their spouse. It is wise to consult with an attorney to see if choosing the elective share is the best outcome if you are left out of a spouse’s will.

Click here to read more on Estates and Probates.

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