Posts Tagged ‘Powers of Attorney’

What is a General Durable Power of Attorney in Michigan?

Written by Christopher J. Berry, Esq. on August 4, 2008 – 5:57 pm -

A general durable power of attorney is a key estate planning document in Michigan. The general durable power of attorney is a document that is used to plan for your financial, property, banking and legal affairs. This document in Michigan, allows your agent to act on your behalf and sign your name to financial and legal documents.

Planning ahead by drafting a general durable power of attorney along with your other estate planning documents will prevent the time consuming, expensive and possibly publicly embarrassing process of having a court appointed guardian or conservator handle your affairs if you become incapacitated. This process in Michigan can also be called, “living probate.”

The general durable power of attorney is a key estate planning document in Michigan and you should have your estate planning attorney draft one for you and also your loved ones, if you have not yet.

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Living Probate

Written by Christopher J. Berry, Esq. on July 23, 2008 – 6:51 pm -

Many people, when they hear the word “probate” think of the court administration after death. However, there is another apsect of probate, called “living probate,” that deals with situations where someone is incapacitated and unable to take care of their own well being and finances. In these situations if it has not been planned for through powers of attorney, it may be necessary to establish a guardianship and conservatorship for them.

A guardian is appointed by the court, after someone requests to be appointed, to oversee the health and well-being of an individual. The guardian must, on an annual basis, file reports with the court as to the status of the incapacitated individual, ward. However, the guardian does not handle any finances or assets for the ward.

That is where the conservator comes into play. A conservator is responsible for managing the finances of the ward, this includes paying bills and investing and paying taxes. Similar to the guardian, the conservator also has to provide on an annual basis an accounting of all income, expenses and changes in the investments of the ward.

These two “agents” may or may not be the same person.

Establishing a conservatorship or guardianship can be time-consuming and expensive. To avoid these procedures, it is ideal to execute a powers of attorney prior to losing your competency, which in most situations negates the need to have a guardian or conservator appointed

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Basic Estate Planning

Written by Christopher J. Berry, Esq. on July 23, 2008 – 2:14 am -

People are afraid of lawyers. People are afraid of death. Put them together and you have an estate planning lawyer. Many people would would rather goto the dentist then think about estate planning and what’s involved. Add to the confusion that when people hear the word “estate” they think of rich, extravagant homes in the Hamptons or in Orange County.

Estate planning is a bit of a misnomer. What it really refers to is handling your affairs during incapacity and after you pass away.

There are two major components to the services an estate planning lawyer provides. First, the counseling involved. Anyone can print of a document off the internet and fill in the blanks. Estate planning lawyers provide real value in the counseling involved in how to handle family situations, how to handle financial situations, and provides options and solutions to address estate planning needs.

The second component is preparing individualized estate planning documents, based off the counseling. Typically, if Federal Estate Taxes are not an issue there are four major sets of documents that are prepared. These are:

  1. Will
  2. Living Trust
  3. Durable Powers of Attorney
  4. Advanced Health Care Directives

The Will actus as a back-up to your trust and provides for guardianship of minor children.

The Living Trust is the “suitcase” that holds all the assets that pass to your beneficiairs and avoids the probate system.

The Durable Powers of Attorney provide instructions and nominates an individual to act as a fiduciary and interact with financial institutions if you become disabled.

The Advanced Health Care Directives nominates an individual to make medical decisions if you become incapacitated.

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