Show Me the Money: The Power of Attorney for Property

By: Janice Dantes

 

When clients ask me about estate planning, they are typically very informed about the importance of a will and a Power of Attorney for Healthcare. They often have had conversations with their loved ones about when to “pull the plug,” organs they want to donate, and arrangements for burial or cremation. However, a will and Power of Attorney for Healthcare cannot answer the question: “Who will pay your bills when you are recovering from a stroke or coma?”

While we all hope to die peacefully in our sleep, not all of us will have that experience. Some of us may become involved in a serious accident and become comatose, suffer a stroke or heart attack, or battle Alzheimer’s disease all of which can impact our ability to make decisions. You may have designated an agent to make medical decisions, but you may not have designated an agent to make financial decisions on your behalf.

Being in a coma does not relieve you of your duties to pay your taxes, mortgage/rent, utilities, car payments, school tuition/student loans, etc. Also, you may have bank accounts or funds that are solely under your name that no one in your family has access to. While you are recovering from your illness, you would not want to incur tax penalties from the IRS, have your home in foreclosure, your car repossessed, etc. because you did not designate an agent to have access to your accounts and pay your bills.

In the event that you have not designated an agent, in order for your close family members and friends to pay your bills on your behalf, they will have to go to court to obtain guardianship over your estate. This is an incredibly expensive process that requires an attorney, the payment of a bond based on the size of the estate, and an annual accounting to ensure that the funds are being used appropriately.

This headache can be avoided with one document: the Power of Attorney for Property. With this document, you can designate an agent to make financial decisions when you cannot make them for yourself. There are specific formalities that need to be met to ensure that your Power of Attorney for Property is valid and enforceable. To learn more about Powers of Attorney for Property, you can contact my office anytime at (312) 546-5077.

Thank you for reading. Until we meet again, love one another.

Janice Dantes is an attorney focused on serving Chicago’s Filipino community. Her area of focus is family law. She was born at Clark Air Force Base in Angeles City and came to the United States when she was 3 years old. Janice is a graduate of the University of Chicago and DePaul University College of Law. Her office is in downtown Chicago. If you would like to speak to her in English or Tagalog with your legal problem, please call (312) 546- 5077 to schedule your free consultation.