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A POA can have uses while you’re still alive and well

On Behalf of | Oct 11, 2022 | Estate Planning, Real Estate Transactions

You just found the perfect property to invest in. Unfortunately, you won’t be around to finalize the purchase. Now you’re conflicted about whether you should stay home to finalize an investment or go on your overseas trip.

Instead of being split between traveling and investing in property, you may have a third option, and it’s related to your power of attorney (POA). Here’s what you should know.

Taking advantage of a financial POA

Your estate plan lets you give someone a general power of attorney. This authority is often given to one person who handles both financial and medical decisions. Some people have their POA divided between two roles – a medical POA, which may authorize health care decisions, such as surgery or medicine, and a financial POA, which may handle bills or deposits.

People typically authorize someone to have POA authority if they’re incapacitated, but a POA can do much more than that. The person with your financial or general POA may also have the benefit of making certain purchases or sales depending on if the POA is considered limited, durable or general.

If the POA is durable, then they likely only take on their role if you’re incapacitated. However, with a general POA, they may be able to make investment choices on other occasions – such as when you’re abroad. Likewise, a limited POA may be granted for specific privileges to purchase or sell a property.

If you’re considering making a property purchase or sale, you may need to assign a power of attorney to secure your investment. It’s wise to seek legal guidance.