Every day there is a story on the news about a tragic accident or you hear that someone you know has a terminal disease.  It is so sad…but it happens! And suddenly we may be faced with making decisions for a family member who has lost their capacity to govern their own affairs.  For example, your Dad is not the same since your Mother died and is having trouble paying bills on time and when you least expect it you are getting a call from his doctor telling you that he does not think Dad is taking his medication correctly.  Or your single adult daughter is in a coma due to a skiing accident.  

So what are the choices when a serious illness or injury happens to us or someone that we love… young or old!  One choice, while we are well and can understand what we are signing, and can make appropriate choices for ourselves, is a Power of Attorney.  A Power of Attorney is a formal written document which gives one person (agent) the power to act on behalf of another person (principal).  It is a helpful tool if you need to have someone represent your interests long-term such as making all legal and financial decisions, or just to accomplish a specific task, such as taking care of the checkbook.

It is important to remember that a Power of Attorney ends upon the death of the Principal.  This is an area of great confusion.  Many people think that if you have a Power of Attorney giving your daughter control over all your assets, she will automatically keep your assets upon your death and you do not need a Last Will and Testament.  This is not true.  If you have a Power of Attorney it terminates upon your death and your assets are distributed according to your Will.  If you do not have a Will, and I strongly urge that you do, your assets are distributed according to the intestate distribution laws of the State of New Jersey.

Remember, a Power of Attorney is a legal document and therefore has to be carefully prepared.  I caution you against using any forms that you might find in a stationary store or on the internet.  Although it may seem like a simple matter, the problems resulting from an improperly prepared Power of Attorney can be quite serious.
I urge you to consult an attorney for the preparation of any Power of Attorney.

The Surrogate’s Court provides a booklet that contains information you would want to discuss with an attorney when you are considering preparing a Power of Attorney.  Just call our office at 856-225-7282 and we will mail one out to you.

DID YOU KNOW?
March is Red Cross Month – support the American Red Cross of Camden and Burlington Counties! Call 856-365-7100 for information on how you can help.