DURABLE POWER OF ATTORNEY
What Is a Power of Attorney?
A power of attorney is a written document in which one person — the principal — authorizes another person — the attorney-in-fact — to act on the principal’s behalf.
What Authority Is Granted by a Power of Attorney?
The authority granted by a power of attorney depends on the type:
General Power of Attorney: The authority granted is very broad…the attorney-in-fact is granted essentially the same legal authority held by the principal. This means that the attorney-in-fact can exercise such powers as making gifts, buying and selling assets and filing tax returns on behalf of the principal.
Special Power of Attorney: The authority granted to the attorney-in-fact is limited to those powers specifically defined in the document.
The authority granted by both a general and a special power of attorney is typically limited to acts performed on behalf of the principal while the principal is competent, which brings us to a third type of power of attorney:
Durable Power of Attorney: The attorney-in-fact is authorized to act on behalf of the principal even if the principal becomes incapacitated. In fact, a durable power of attorney can become effective immediately, or it can become effective only if the principal later becomes incapacitated.
Why Should You Consider a Durable Power of Attorney?
In the event of future incapacitation, a durable power of attorney can be particularly useful in:
Estate Planning/Management: The attorney-in-fact acquires the authority to implement an estate plan and manage the principal’s estate during a period of incompetence.
Daily Living: A durable power of attorney can give the attorney-in-fact the authority to manage such practical issues as making living arrangements for a disabled person and paying the bills.
As with any legal document, legal advice should be obtained before entering into a power of attorney.
from the Masters…
MAKE YOUR LIFE AN EXPERIMENT
by Steve Goodier
Do you experiment with new attitudes and new behaviors? Do you constantly try to improve your skills? Do you make your life an “active science”? It is not hard to see what can happen when we refuse to improve ourselves.
Do you know who set the standard for fine watch making for most of the 20th Century? If you answered, “The Swiss,” you are correct. Swiss wristwatches dominated world markets for at least 60 years and Swiss companies were committed to constant refinement of their craft. It was the Swiss who came forward with the minute hand and the second hand. They led the world in discovering better ways to manufacture the gears, bearings, and mainsprings of watches. They even led the way in waterproofing techniques and self-winding models. By 1968, the Swiss made 65 percent of all watches sold in the world and laid claim to as much as 90 percent of the profits.
Now…which country sold the most wrist watches in the 1980s? The answer is Japan. By 1980, Swiss companies had laid off thousands of watchmakers and controlled less than 10 percent of the world market. Their profit domination dropped to less than 20 percent. Between 1979 and 1981, eighty percent of Swiss watchmakers lost their jobs.
Why? The Swiss had refused to change the way they traditionally designed watches and utilize the less expensive and more accurate Quartz crystal. (Quartz movement, ironically, was invented by a Swiss.) They did not seriously experiment with a radical new way of designing timepieces.
Our lives are not so different. Without constant experimentation — daily growth and change to become the best we can be — our old attitudes, behaviors and skills will no longer work for us. The old ways of thinking and doing will be about as relevant as a grandfather clock on a space shuttle. We need to experiment and improve. We need to turn our lives into an active science.
“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do,” wrote Mark Twain. “So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.”
Make your life an experiment…and something wonderful can happen!
Brought to you by:
Mark Holland, JD
Cambridge Financial Center
1942 Berkeley Street
Salt Lake City, UT 84108-3202
About our firm:
Hello, my name is Mark Holland and I thank you for your interest in learning more about the world of money. I bring a simple method to money management that can best be explained by the Japanese word “kaizen,” meaning “change for the better”. My web site, www.markhollandinsurance.com, and my monthly newsletters are chock-full of financial tips to help you understand how money works, how to take charge of the solutions to your financial and life concerns, and how exciting, liberating and satisfying provident living can be, even in this difficult economic environment.
from the Masters…
“Don’t be afraid to give your best to what seemingly are small jobs. Every time you conquer one it makes you that much stronger. If you do the little jobs well, the big ones tend to take care of themselves.”
— Dale Carnegie
“If you wish to have power and influence over the many, be faithful (disciplined) when there is just a few. If you have a few employees, a few distributors, a few people, that’s the time to stay in touch and be totally absorbed – when there is just a few.”
— Jim Rohn
“Use what talents you possess; the woods would be very silent if no birds sang except those that sang best.”
— Henry Van Dyke
On Stress Management
“If you are distressed by anything external, the pain is not due to the thing itself but to your own estimate of it; and this you have the power to revoke at any moment.”
— Marcus Aurelius
“I am more and more convinced that our happiness or our unhappiness depends far more on the way we meet the events of life than on the nature of those events themselves.”
— Karl Wilhelm Von Humboldt
“Stress comes from within; it is your reaction to circumstances, not the circumstances themselves.”
— Brian Tracy
The purpose of this newsletter is to provide information of general interest to our clients, potential clients and other professionals. The information provided is general in nature and should not be considered complete information on any product or concept described.
For more complete information, please contact my office at the phone number above.
Published by The Virtual Assistant; © 2012 VSA, LP
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