Need a Trusted Individual to Help Maintain Your Finances? Take the following into consideration
Powers of Attorney v. Adding a New Co-Trustee
A document entitled Power of Attorney and Durable Power of Attorney are powerful estate planning documents. One difference between the two documents is that a Power of Attorney can terminate upon incapacity, however, a durable power of attorney can remain in effect. They are quite simple documents at first glance, but it is important to understand your state specific laws that regulate the requirements for drafting.
This was a question I felt I knew the answer to quickly, however, when I delved deeper into my real understanding behind powers of attorney I learned quite a lot.
My first question was should I amend the trust to allow the successor trustee to now serve as co-trustee or should I amend the durable power of attorney and give the successor trustee an immediate power of attorney?
Adding a co-trustee to a trust gives the new individual full authority to act on behalf of the trust assets, but the agent within the power of attorney may not. A trustee has power to amend and change the terms of everything, therefore, I felt in my gut that changing the power of attorney was a much better solution.
/s/ Natalie A. Staroschak, Esq.
Other Article Of Interest:
What To Do Before You Die
Power Of Attorney Life Or Death