Do you have a power of attorney? Do you think that it's unneeded, it’s a waste of time? Let me give you one specific instance where a power of attorney is almost essential.
A lot of clients I have are from the baby boomer generation and for a lot of them the husband has been the bread winner. They have worked at their job for a number of years and now we are rolling over their retirement plan into an IRA. For the most part, the spouse has been the homemaker, and there is nothing to knock on homemakers because I know what a tough job that is.
What Happens if….
An instance came up where a client asked me what happens if something happen to the husband where he is incapacitated, in a coma and he can't sign, and we need money out of his IRA and we don't have a power of attorney.
It was such a good question. It's funny, I don’t get that question a lot. Here is the thing; if you're a spouse of your husband and he is in a coma and you are not power of attorney on his accounts, then you are not able to sign for him and you are not able to draw money out of that. You actually have to go to the court house and apply for a temporary power of attorney.
Typically, it depends, it could be a week, could be two weeks. Then, over and above that you have to keep applying – showing that you're using that money for your husband. It's just a long complicated process. And there are fees involved.
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Get The Power
All of this could be avoided if you had a simple, durable power of attorney. They are very inexpensive. If you are drafting you’re will, typically most people will have one of those included. If you haven't drafted a will I encourage you to do that too. If you are considering or haven't considered doing a durable power of attorney yet, please do.
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