Cost Without Power of Attorney
One of the most common ways to protect your future is to obtain a power of attorney. While the average family might second guess the upfront cost of getting a power of attorney, that cost will still be significantly more affordable than the cost of going without one.
What is a Power of Attorney?
This is a legal document that basically gives another person permission to make decisions in your name. However, the document has more than one type. For example, a regular power of attorney gives your designated person the power to act on your behalf while you are mentally capable of doing so, but a durable power of attorney gives that person the right to act on your behalf while you are physically unable to communicate exactly what you want. Choosing a type of power of attorney can be a little tricky because you have to consider future possibilities. It is best if you let your attorney help you make this decision because he can offer you a clear take on your assets.
What is a Conservatorship?
A conservatorship is what will happen if you don’t set up a power of attorney ahead of time. If you don’t have a power of attorney, your matters are then turned over to the court where a lot of expensive fighting can happen among loved ones. If you end up being unable to make your own decisions and you did not have a power of attorney before this life change, everything will be handled in a conservatorship which is simply a court case that determines who will make decisions on your behalf. The courts will take control of everything and then decide who to put in charge. In a best case scenario without anyone there to fight against the conservatorship, it can still run you anywhere between $10,000-12,000 a year.
Is a Power of Attorney Better than Conservatorship?
Yes, a power of attorney is the better option because you are able to consider things in your best health and mental state. You can set up a power of attorney for your finances and health care before it even becomes an issue for anyone else to fight over. Otherwise, you and your loved ones could find yourselves in a very expensive situation trying to pay the fees of every attorney involved.
Your next step is to join our facebook group called “Parents Protecting Assets in California”. We provide valuable information on protecting assets from future in-laws and creditors!