Powers of
Attorney
The Essential guide to Protecting your family’s wealth
Martin M. Shenkman, Esq.
AND
Jonathan Blattmachr, Esq.
© Copyright 2015 Martin M. Shenkman, Esq. and
Jonathan Blattmachr, Esq. All rights reserved.
Published in eBook format by eBookIt.com
ISBN-13: 978-1-9425-2692-6
Cover and book design by LandMarc Design | LandMarcDesign.com
Cover image © Mariadubova | Dreamstime.com
This book is protected by copyright. No part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher.
Disclaimers: The discussion of any legal or tax (income, gift or estate tax), or other planning alternatives and observations herein are not intended as legal or tax advice and do not take into account state law variations, the particular estate planning objectives, financial situation or needs of individuals. This book is based upon information obtained from various sources that the authors believe to be reliable, but the authors make no representation or warranty with respect to the accuracy or completeness of such information. Views expressed herein are current opinions only as of the date indicated, and are subject to change without notice. Forecasts may not be realized due to a variety of factors, including changes in law, regulation, interest rates, and inflation.
Neither the publisher nor authors provide through this book any legal, tax, or other professional advice. Readers are cautioned not to take any action in reliance on the materials presented in this book without first consulting their own professional advisers. Legal, tax and personal situations vary significantly from individual to individual. Tax and other laws change frequently, and there are significant differences in state laws, so professional guidance is essential to implement any of planning ideas in this book.
For additional copies contact Martin Shenkman at:
P.O. Box 1130, Fort Lee, NJ 07024
To our wives who
are our best friends.
CHAPTER ONE
Introduction
Estate planning is part of financial planning that primarily involves taking steps today to address the possible risks and costs that may occur in the future that could undermine your financial, personal, or legal security. Consider:
•You head off on your dream cruise around the world—12,966,000 Americans are estimated to have taken cruises in 2014. The day you depart your bank erroneously bounces a check you deposited to cover expenses while you were gone. Who can deal with the problems that result while you are pondering the rolling waves and blue sky?
•Maybe you don’t like water, but you’ve always wanted to hike the Appalachian Trail. The day after you retire, you leave for Springer Mountain. The next day an IRS audit notice arrives at your empty condo. In 2011, there were 1,564,690 audits. Wouldn’t it be better if someone had the authority to intercede on your behalf rather than have the IRS assume you don’t intend to respond and begin collection proceedings?
•What happens if you become sick or disabled? About 5.2 million Americans are living with Alzheimer’s disease. If you are one of those affected, who will be able to handle your financial matters as you become less able to do so?
•Every year about 720,000 Americans suffer a heart attack. If you’re one of the unfortunate people who has such a medical emergency and are hospitalized for a period of time, who will pay your bills so that your bank doesn’t foreclose on your mortgage, so that the utility company doesn’t cut off your electricity and gas?
Reality Check: Disability doesn’t happen to you, it happens to the other guy, so you don’t have to plan. Right? Or perhaps disability is something that happens to sick folks and you’re tougher than a bulldog. Or maybe disability is for old people and you’re still a spring chicken.
Maybe it is time for a reality check:
•In 2012, there were 51,892,000 people over 18 who experienced a disability. That’s about 22.4 percent of the total people over 18, or nearly a 1 in 4 possibility.
•Just over 25 percent of today’s 20-year-olds will become disabled before they retire.
•Over 37 million Americans are classified as disabled, which is about 12 percent of the total population. More than 50 percent of those disabled Americans are in their working years, from 18-64.
What you need is a power of attorney.
Tip: The power of attorney is one of the most important legal and financial documents in your self-protection plan.
Healthcare Decision Making
This book does not address appointing a person (called an agent or proxy) to make healthcare decisions for you, or any of the other means you can use to communicate or address medical decision making. These issues are addressed in other legal documents such as in a healthcare proxy (sometimes called a medical power of attorney), living will, HIPAA release, and organ donor card.
Bottom Line Up Front
What we will do is guide you through many of the ways you can tailor this powerful tool—your power of attorney—to preserve your control over your finances, maintain your independence, minimize or avoid legal costs and entanglements, and deal with many unexpected “what-if” scenarios in practical ways. The checklist in Appendix A will help you gather the information and make the key decisions you need to create a power of attorney tailored for you and your personal situation, rather than relying on a standard “boilerplate” form that most likely overlooks key issues essential to your security.
What Is a Power of Attorney?
The power of attorney is a legal document that grants a designated person (your attorney-in-fact or agent) the power to act on your behalf. It is one of the most important financial and estate planning documents you can have.
Most people think only about a will when they think about estate planning, but a power of attorney can potentially authorize the transfer of more
