Most people believe that once they’ve completed the documents needed for an estate plan, that they can put the issue to bed. Some of those estate planning documents may need to be utilized before a person actually dies. Colorado residents should know that an estate plan can also cover situations where an individual is not able to manage his or her own affairs at some point in the future.
That’s why it is essential that an estate plan be complete and include such important documents as a durable power of attorney for finance of which there are two types — immediate and springing. As its name implies, an immediate durable power of attorney for finance goes into effect immediately after the testator signs it. A springing durable power of attorney for finance means the testator can no longer manage his or her own financial affairs according to two doctors who have examined the testator.
The springing version actually means that whomever has been named as the agent for a durable power of attorney for finance must get doctors’ letters before he or she can act on that power of attorney. Selecting the right person as an agent is crucial. He or she should have some financial acumen and be able to turn everything back to the testator should he or she recover capacity.
Unforeseen events in life can happen quickly and without warning. It is essential to have the right estate planning documents such as a durable power of attorney for finance as part of an estate plan. A testator may wish to get legal advice from a Colorado estate planning attorney regarding which type of durable power of attorney for finance would be best for his or her situation.