FAQ Friday: Financial POAs
On Friday, December 2nd, Mr. Berger describes what is included in financial power of attorneys and what they achieve.
The Maryland general power of attorney is more readily acceptable at Maryland banks. The issue that can come with this form is that it doesn’t say durable. This term means that it is in force even if you become disabled.
Maryland statute says that it even if it doesn’t state durable, it still is durable. 90% of the power of attorneys are effective immediately.
The first part of this form discusses the broad powers being given to those chosen. The agents chosen, successors or co-agents are all then listed. Co-agents have to do everything together and successor agents all act in order.
Most items agents can do usually cover your property. Sometimes you run into issues of bankruptcy or insolvency which can be rare. It can also cover retirement accounts.
We normally don’t have a termination date. Maryland requires a signature, notary and 2 witnesses for validity.
Power of attorney is no longer effective once the person passes away. Usually the same powers are available in the general form as well as the Maryland form.
Sometimes it can contain specific information about securities or benefits. We also discuss the responsibilities of the agents chosen (fiduciaries).
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