'What If...' Plans
There are three kinds of planning: current planning, future planning and contingency planning. Contingency planning is the “what if” scenario, and is a vital part of providing for both yourself and your family in the event of unexpected circumstances.
The two most common contingency planning documents are powers of attorney: one for finances and one for health care.
Financial Durable Power of Attorney
A Financial Durable Power of Attorney [Financial DPOA] allows you to choose someone to conduct financial activities on your behalf (e.g. paying bills) should you become incapacitated. Covenant Trust Company® recommends every person consider the advantages of a Financial Durable Power of Attorney. Even if you have a revocable living trust, we still recommend that you have a Financial DPOA. The trustee of a trust has control only of the assets that have been transferred into the trust. A Financial DPOA authorizes the attorney-in-fact to work with those financial assets outside the trust.
Signing a Financial DPOA gives significant authority to the attorney-in-fact. Before you sign a Financial Durable Power of Attorney, it is important to know the character and the capability of the person you choose as attorney-in-fact, and to understand the powers being conveyed. A General Financial DPOA normally involves all financial assets not transferred to a trust. A Limited Financial DPOA authorizes only limited powers. Authority granted by the Financial DPOA ceases at your death. [read more about Financial Durable Power of Attorney]
Your local Covenant Trust Company Financial Services Representative can help if you need a new or updated power of attorney. [view Directory]