A Durable Power of Attorney is a critical piece of an estate plan for wealthy clients with life insurance policies. This legal document enables the power holder or the attorney to carry out specific legal and financial transactions for the physically unfit person. It is crucial that a wealthy individual with an estate plan follows up with a planned program that carries on till the death of the owner. The insured person needs to gift money to the life insurance company, so that the trustee can pay policy premiums every year till death. The Durable Power of Attorney document enables the family members of the old individual to help carry out several functions. These are:
- The power to acquire life insurance on the lives of other family members as the granter of the Durable power in whom he or she has an insurable interest
- The power to retain investments and change and make alterations in the investments as owned by the estate owner
- The power to invest in variable and fixed annual investments such as bonds, stocks and mutual funds. The power holder is the sole person who decides what he wants to invest in terms of money market accounts or cash.
- The Durable Power of Attorney also allows the person to exchange, sell and convey a property owned by the grantor of this power.
- With the Durable Power of Attorney, you can also compromise and settle a legal dispute against the grantor or even for him.
- You can also have the power to gift and make gratuitous transfers to a spouse, descendants and other charitable institutions.
In order to execute a Durable Power of Attorney, you need to have the right mental capacity to execute and formalize the document in the first place. This mental capacity is the same that is required when executing a will. In case you would like to know more about a Durable Power of Attorney Document, please visit us at hwww.notarizers.ca or call us at 416-782-5926.