A Power of Attorney (POA) is a legal document giving another person or institution the right to do certain legal acts or tasks for another person (the Principal).  This document may be one of the most important in an Estate Planning.  It will save significant time and money if circumstances necessitate its use.  A person giving another Power of Attorney can make it very broad (General POA) or can limit it to certain acts ( Limited POA).

The person giving another a Power of Attorney does not surrender his or her rights.  It simply authorizes another to act on his or her behalf, much like giving another person an extra set of keys to your house; you, of course, still maintain the access to your house yourself and you can take back the key or change the locks if you choose.

A “General” Power of Attorney gives your agent very broad powers to do almost every legal act that you can do.  The document will list numerous authorizations and then contain a general catch-all authorization for the person with the Power of Attorney to perform acts for you.  It will include financial, health and property management powers.  A “Limited” Power of Attorney gives the agent only certain powers or rights to engage in a particular transaction on your behalf, such as signing financial documents on your behalf if, say, you cannot be present at a house closing.

A “Durable” Power of Attorney comes into play if what you want to accomplish is having . …..click here to finish this article

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Is featured on New-Jersey-Lawyers.com

Written by Michael B Mangini, J.D.

Question 1: What is a trust?

Answer: A trust is a legal relationship among persons that requires: (1) a person who creates and funds the trust (trustor), (2) a person who benefits from the income and principal in the trust (beneficiary), and (3) a person who manages the property in the trust and distributes income and principal according to the terms of the trust (trustee). Think of it as a contract. The governing instrument is the writing that contains the relevant provisions.

Question 2: What is the purpose of a trust?

Answer: There are many purposes for trusts. Each trust is different. Primarily, the purpose of the trust depends on what the trustor wants to accomplish. The goals of the trustor dictate the way a trust is drafted, i.e. the drafter will write provisions designed to accomplish the trustor’s goals within the limits of the applicable law. After the trustor signs and funds the trust, the rights of the trustor and beneficiary and the duties of the trustee are determined with reference to the written provisions of the trust. Trusts may be used to protect assets, limit the use of assets, manage transfer taxes, avoid probate, benefit charities, provide for pets, and to address many other situations…….

To read the balance of this article or find a New Jersey Estate Planning and Administration Lawyer or visit twww.New-Jersey-Lawyers.com.

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Written by Michael B Mangini, J.D.

Question 1: What is a trust?

Answer: A trust is a legal relationship among persons that requires: (1) a person who creates and funds the trust (trustor), (2) a person who benefits from the income and principal in the trust (beneficiary), and (3) a person who manages the property in the trust and distributes income and principal according to the terms of the trust (trustee). Think of it as a contract. The governing instrument is the writing that contains the relevant provisions.

Question 2: What is the purpose of a trust?

Answer: There are many purposes for trusts. Each trust is different. Primarily, the purpose of the trust depends on what the trustor wants to accomplish. The goals of the trustor dictate the way a trust is drafted, i.e. the drafter will write provisions designed to accomplish the trustor’s goals within the limits of the applicable law. After the trustor signs and funds the trust, the rights of the trustor and beneficiary and the duties of the trustee are determined with reference to the written provisions of the trust. Trusts may be used to protect assets, limit the use of assets, manage transfer taxes, avoid probate, benefit charities, provide for pets, and to address many other situations…….

To read the balance of this article or find a

New Jersey Estate Planning and Administration Lawyer or to find a nj lawyer for other new jersey legal needs visit  www.New-Jersey-Lawyers.com 

Use A Durable Power of Attorney To Avoid Problems
By Michael B. Mangini, J.D., C.A.P.
www.newjerseyestatelaw.com

Published by www.new-jersey-lawyers.com

Although it does happen, it is a rare event when I suggest that a client not sign a Durable Power of Attorney (DPOA), a document that creates a legal, enforceable relationship between the person who signs it (known as the “principal”) and the person who acts for the principal (known as the “agent,” “attorney-in-fact,” or “personal representative”). It is important to note that a DPOA is freely revocable at any time before you become incapacitated. After that, a judge who finds cause may revoke the authority granted in the DPOA.

When you, as principal, sign a Durable Power of Attorney you authorize your agent to manage your finances and property in your best interests. The agent owes a fiduciary duty to you and your heirs to act prudently under all the circumstances for you. An agent who engages in self-dealing and who raises his own interests above your interests or the interests of your other family members may be subject to civil and criminal penalties.

A well-drafted DPOA tends to avoid the need for a person to ask a court to declare you incompetent and for an order of Guardianship. Such a proceeding wastes time and money that can be better used for your benefit.

There are a variety of cases in which a DPOA may be necessary. Consider these examples. (1) If you and your spouse own any real property together you probably own it as tenants by the entirety. If so, neither of you may sell, mortgage or otherwise affect legal title without the consent of the other. If one of you becomes incapacitated and the other needs to sell the property or refinance, the healthy spouse will have to seek an order of guardianship from the court before conducting the transaction. (2) Some individuals create a joint bank account in place of signing a DPOA; this can cause more problems than it avoids.

In many situations lifetime gifts represent a valuable asset-protection and estate-planning technique. The existence of a valid, well-drafted DPOA that includes an appropriate authority to make gifts may facilitate the implementation of the plan. The law in New Jersey is clear: an agent under a DPOA that does not specifically grant the authority to make gifts legally may not make gifts.

The most important qualifications for an agent are trustworthiness and an understanding of the agent’s fiduciary duty. Too often the agent misuses his “power” to the detriment of the principal and the principal’s family. The agent’s inability or refusal to act responsibly may result in acrimony among the family members along with prolonged, emotional and expensive court proceedings. Competent professional advice can go a long way to avoiding very serious problems.

Contact Michael Mangini for more assistance in your legal situation. Visit www.newjerseyestatelaw.com for more information.