Hi everybody, this is Lou Silverman with Silverman Law Offices.
I hope that you’re doing well. I know these last couple of months have been a little rough on everybody. People are starting to get out and about a little bit, but let’s hope everybody stays safe and well.
I wanted to answer a question that has been raised to me a number of times. And that is, when people have revocable trusts, as kind of the linchpin of their estate plan, they wonder, “Well, why do I need a Durable Financial Power of Attorney as well?”
They generally understand that under a trust, the trustee manages the assets of the trust and a successor trustee, that you’ve appointed, would stand in your shoes as a trustee in the event of your incapacity and manage those same assets. So, they don’t need a Power of Attorney to do that, the trust is what authorizes them to do that. When a person becomes a trustee, they get a Certification of Trust prepared, and that is what’s given to third parties to verify that authority.
But, not everything is involving a trust. For example, a Financial Power of Attorney is needed for an agent to file your tax returns, or take care of retirement plans that are not in a trust. Or defend lawsuits or file lawsuits. There’s a lot of miscellaneous things that arise in your life that are not covered or involved in your trust, that’s why you have a Financial Power of Attorney.
If you have any more questions, we’re always here to help you, and we look forward to seeing you soon.
