People in Pennsylvania may not like thinking about death and would much rather focus on life. However, it is important to prepare for death as people are not able to bring anything with them. Most people have at least heard of wills and trusts and that they are used to determine who will receive their property after they pass away. There are other documents that are important though as people go through the estate planning process.
One of these documents is a Power of Attorney. This document appoints an agent who is given the authority to make financial decisions for the person and also make financial transactions on their behalf. This can be very important if people are incapacitated or for other reasons are not able to make these decisions on their own. People do have control over which transactions and decisions the agents can make on their behalf though.
The type of actions the agent can make for the principle includes creating trusts or make additions to existing trusts; to use income made from the trusts; to engage in real estate transactions; to buy and sell stock; to conduct banking transactions; to take loans; to handle tax matters; receive governmental benefits for the person; to operate the person’s business; to handle litigation; to conduct insurance transactions and other types of transactions. The person can limit how many of these actions the agent can take though.
There are many financial decisions that people in Pennsylvania must make each year. However, they cannot make these decisions if they do not have the cognitive ability to do so. This can because they are in a coma potentially or if they are suffering from dementia and other deceases that make it impossible to understand what they are doing. That is why it is important to have a Power of Attorney and should be part of their estate plan. These documents must meet certain requirements though and consulting with an experienced attorney could be beneficial.