Without an extensive power of attorney (POA), a lot of men and women are unable to handle the financial affairs of their loved ones, nor make health care decisions without court intervention (conservatorship and guardianship). Unfortunately, it continues to be our experience that lots of people, including financial consultants, accountants and even some attorneys don't understand what one is and why it's so important to have one. Clients often come into our office assuming that, just because they are married or are a joint owner of resources, they are able to sell or transfer assets. Actually, a current client is unable to sell his mother's house cause she signed a durable power of attorney.

You will find lasting powers of attorney which authorize your representative to make decisions for you concerning monetary issues and health care powers of attorney which permit your agent to make decisions regarding your health needs.

Yours can be broad in scope, giving your agent the ability to make any and all financial choices for you (a General Durable POA) or you can restrict your agents authority by specifying the types of financial decisions you may permit them to create (a Limited Durable POA). You may also prefer to give your broker the instant authority to make decisions on your behalf (a Durable POA) or you could limit your brokers authority to act only once you become incompetent (a Springing POA).



Guardianship is a legal relationship in which the court gives a person (the guardian) authority to make private decisions (medical, housing, etc.) for another (the ward). A proceeding is initiated by filing a petition in the probate court. divorce attorney written statement by a doctor might be necessary to establish the ward's incapacity. The court then determines whether a guardian is needed due to the ward lacking the required mental capacity to make private decisions. Unless limited by the court, the guardian has the same rights as parents have over their minor children. The guardian is required to report annually to the court regarding the condition of the ward.

A conservator is a legal relationship whereby the probate court provides a person (the conservator) the capacity to make financial decisions for another. The court proceedings are similar to those of a guardianship except that the court is determining whether the person has the capacity to handle their financial affairs. A conservator is also required to submit an annual accounting documenting (with confirmation) all of the earnings and expenses incurred every year. A surety bond (an insurance policy) is frequently needed by the court to protect against the conservator engaging in any improper usage of the person's assets.