Although the authority granted in a Power of Attorney should be clear, it is not uncommon for a third party to refuse to honor that authority. A third party may claim the POA was executed too long ago or question the authenticity of the document. A third party may also refuse to honor a POA unless it is created using their form. Consult with an attorney if you run into a problem using your Agent … [Read more...] about What happens if a third-party refuses to honor a Power of Attorney?
What is a health care Power of Attorney?
Most states recognize a type of advance directive known as a Health Care Power of Attorney. This is a special type of POA that allows the Agent to make health care decisions for the Principal is the Principal cannot make them as a result of his/her incapacity. … [Read more...] about What is a health care Power of Attorney?
What is a Springing Power of Attorney?
Both a general and a limited POA can be a Springing POA. A Springing POA is has special language in it that causes the Agent’s authority to “spring” into action at a specific time or upon the occurrence of a specific event. For example, you might create a general POA that does not actually go into effect unless you have been missing for more than 48 hours or until you have been declared … [Read more...] about What is a Springing Power of Attorney?
What is a Durable Power of Attorney?
Historically, the authority granted to an Agent in a POA automatically terminated upon the death or incapacity of the Principal. As you may well imagine, however, the possibility of becoming incapacitated is a common motivation for executing a POA. In other words, many people create a POA specifically to ensure that their Agent named in the POA has the authority to act on their behalf if they … [Read more...] about What is a Durable Power of Attorney?
What Is a Limited Power of Attorney?
A limited POA only grants to your Agent the limited, and specific, authority enumerated in the POA. For example, you might grant an Agent the specific power of attorney to act on your behalf during the sale of your vehicle while you are out of the state on a business trip. A limited POA is also frequently used by the parents of a minor child to grant a caregiver the authority to consent to … [Read more...] about What Is a Limited Power of Attorney?
What Is a General Power of Attorney?
A POA can be either general or limited. A general POA grants your Agent almost unlimited power to act on your behalf. This means that your Agent may be able to do things such as withdraw funds from your financial accounts, sell property and assets owned by you, and even enter into contracts in your name. Given the power an Agent has under a General POA, you should have absolute trust in someone … [Read more...] about What Is a General Power of Attorney?
What is a Power of Attorney?
At its most basic, a Power of Attorney (POA) is a legal document that allows you (referred to as the “Principal”) to grant another person (the “Agent”) the authority to act on your behalf in legal matters and transactions. The type and extent of the legal authority you grant to an Agent depends on the type of POA you create. … [Read more...] about What is a Power of Attorney?
How can Medicaid planning help me?
Medicaid planning incorporates legal tools and strategies into your estate plan to protect your assets and ensure that you will be eligible for Medicaid benefits if you need them in the future. It is among the most important estate planning components if you cannot afford to cover LTC costs out of pocket because it protects your hard-earned assets and provides you with peace of mind during your … [Read more...] about How can Medicaid planning help me?
Can’t I just transfer assets to my adult children if I need to qualify for Medicaid?
There was a time when this was an option; however, Medicaid imposed a five-year “look-back” rule that now prevents an applicant from transferring assets in anticipation of the need to qualify for Medicaid. The look-back rule allows Medicaid to review your finances for the five-year period leading up to your application. Any transfers for less than market value will likely cause Medicaid to impose … [Read more...] about Can’t I just transfer assets to my adult children if I need to qualify for Medicaid?
What happens if my assets exceed the limit?
If your assets do exceed the limit, Medicaid will deny your application. At that point, you will enter what people commonly refer to as the Medicaid “spend-down” requirement. In essence, you will need to “spend-down” your assets until the value of your non-exempt assets is below the program limit at which point Medicaid will approve your application and begin covering your healthcare expenses. … [Read more...] about What happens if my assets exceed the limit?
