As people grow older, they naturally start to think more about planning their estates. One thing that everyone in Iowa should have in place is a plan for a power of attorney. Some families move ahead with one simple power of attorney document. Others separate different powers of attorney in different documents. There can be advantages to taking the latter approach.
Using a single POA document can be complicated if the intention is to give different powers to different people. A better strategy can be to use several limited power of attorney documents. Some families have great success with taking this approach to estate planning.
Limiting each POA is a great way to demarcate who is responsible for what and to prevent confusion among workers at banks, assisted living homes and other facilities. Some people make one child a POA for all things financial, and another is in charge of POA for all things medical.
Other families make it a point to keep different aspects of their finances separate. One child may be put in charge of the checking account. Another may be responsible for long-term investments or retirement accounts. This can be a wise way to proceed. As people age, it’s important to ensure that their financial affairs are well-structured.
It’s always a good idea to separate some powers from others. Giving all the power to one person can be too much responsibility for him or her to shoulder. In some cases, power can also go to people’s heads. It can be tempting to have control over everything in one durable power of attorney.
For help with estate planning, it’s a great idea to reach out to an experienced attorney. Some firms specialize in handling complex estates. They’re used to dealing with the nuances of power of attorney and different classifications of powers.