Should I Have a Durable Power of Attorney in North Dakota

SHOULD I HAVE A DURABLE POWER OF ATTORNEY IN NORTH DAKOTA?

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When you think about estate planning, you are invariably going to think about

financial matters. Indeed, you should facilitate effective and efficient asset

transfers when you are devising your estate plan.

At the same time, people do not typically pass away after they were in perfectly

good health for the years and months leading up to their passing. A

comprehensive estate plan will also address some of the contingencies that you

may face during the latter portion of your life.


INCAPACITY IS COMMON

No one wants to embrace the notion, but the reality is that incapacity is relatively

common among people who have reached an advanced age.

How common is it? The facts may surprise you. There are a number of different

causes of incapacity, but Alzheimer's disease certainly gets your attention.

This disease strikes approximately four out of every 10 Americans who are at

least 85. People are living longer lives, and you may well live into your eighties

and beyond.


GUARDIANSHIP

We have all heard of Alzheimer's disease, and everyone knows that incapacity

can strike, but many people take the "it will never happen to me" approach.

If you do nothing to prepare for possible incapacity, what would happen if you

were to become unable to handle all of your own affairs? The answer is that

interested parties could

petition the state to

appoint a guardian to step

in. This court-appointed

guardian would be

empowered to act on your

behalf, and you would

become a ward.

Most people would not consider this to be a very pleasant proposition. You would

have no control over the decisions of the court, and the guardian that is chosen

may not be someone that you would have selected on your own.

Plus, there can be disagreements among members of the family.


DURABLE POWERS OF ATTORNEY

You could prepare for possible incapacity through the creation legal documents

called durable powers of attorney. The "durable" designation is significant. A

standard power of attorney that is not durable would not remain in effect if the

grantor of the power was to become incapacitated at some point in time.

There are different facets of life that would be impacted if you were unable to

handle your own affairs. You can account for this through the execution of two

durable different powers of attorney.


A durable financial power of attorney would typically be executed. As the name

would suggest, the agent or attorney-in-fact that you name in the document

would be empowered to handle your financial affairs if you were to become

unable to make your own decisions.

Health care decision making is another piece to the puzzle. Your incapacity plan

could also include a durable power of attorney for health care. The agent that

you name in the document would be able to make medical decisions on your

behalf in the event of

your incapacitation.

The durable power of

attorney for health care

is sometimes called a

health care proxy.

We should point out the

fact that you could choose to execute springing durable powers of attorney.

These documents would only go into effect if you were to become incapacitated.


SUMMARY

Incapacity is not uncommon among the oldest old, and this is a reality that we

all must face.

The state could appoint a representative to manage your affairs if you take no

steps in advance to name your own hand-picked decision-makers. This

representative would be

your guardian, and you

would become a ward

of the state.

When you plan your

estate, you can be

proactive and prevent a

guardianship. An

effective estate plan will include an incapacity planning component.

You could use durable powers of attorney to name representatives to act on your

behalf. When these documents are in place, there would be no need for a

guardianship proceeding. The state would not be involved, and decision-makers

of your own choosing would be empowered to handle your affairs.


We have provided some basic information about durable powers of attorney in

this paper. To learn more, schedule a consultation with a licensed estate

planning lawyer.

REFERENCES

Alzheimer's Association

https://www.alz.org/ American Bar Association

http://www.americanbar.org/groups/law_aging/resources/consumer_s_toolkit_for_health_care_advance_planning.html

https://www.alz.org/




About the Author

Raymond J. German

As an attorney in Minnesota and North Dakota, Raymond

J. German provides a wide range of estate planning

services to his clients, with a primary focus on helping

them provide for the security of their loved ones, reduce

estate taxes and avoid or at least minimize the costs and

delays of probate, all with a well-crafted estate plan. Mr.

German defines the mission statement for German Law

Group, PC, as "Helping one family at a time pass on

values, beliefs and finances, which can be shared for

generations to come." Mr. German is well aware of the

growing importance of estate planning and dedicates himself to informing the

public of the need for careful attention to their specific situations. He is a

frequent speaker on a variety of estate planning topics, regularly presenting

educational seminars for the public as well as private groups.

Raymond J. German approaches each challenge with not just solid expertise, but

also remarkable enthusiasm and vigor. By constantly seeking simpler, better, and

more effective ways of doing things, he continues to make a real difference in

the lives of families and on the way estate planning is practiced by attorneys

around the country.

German Law Group, PC

www.GermanLawGroup.com

GRAND FORKS

2650 32nd Avenue South, Suite O

Grand Forks, ND 58201

Phone: (701) 738-0060

Toll Free: (800) 774-7576

Fax: (701) 738-0064

http://www.germanlawgroup.com/