Why Every Texan Needs a Durable Power of Attorney

Planning for the future is a vital step in securing peace of mind, and for Texans, one of the most important legal instruments to consider is a Durable Power of Attorney (DPOA). This document ensures that your financial and legal affairs are managed efficiently and effectively, even in the event of incapacity. Below, we explore why having a DPOA is essential and how it can protect your interests.

What Is a Durable Power of Attorney?
A Durable Power of Attorney is a legal document that allows you (the principal) to appoint someone you trust (the agent) to manage your financial and legal matters. Unlike a general power of attorney, the “durable” nature ensures that the agent’s authority remains effective even if you lose mental or physical capacity.

Key Benefits of a Durable Power of Attorney in Texas

• Continuity of Financial Management: A DPOA ensures that bills are paid, investments are managed, and assets are protected without interruption if you are unable to handle these tasks yourself.
• Avoiding Court Intervention: Without a DPOA, your loved ones may need to seek court-appointed guardianship to manage your affairs—a process that is time-consuming and expensive. A DPOA eliminates this need by granting authority directly to your chosen agent.
• Flexibility and Customization: Texas law allows you to tailor the powers granted in your DPOA. You can specify which tasks your agent can perform, from managing bank accounts to overseeing real estate transactions.
• Protection Against Exploitation: By appointing a trusted individual, you safeguard against potential financial abuse or mismanagement, particularly for vulnerable individuals like seniors.
• Estate Planning Integration: A DPOA complements other estate planning tools such as wills and trusts, creating a comprehensive strategy for managing your future.

Legal Requirements in Texas
To be valid in Texas, a Durable Power of Attorney must:

• Be signed by the principal in the presence of a notary public.
• Explicitly state its durability (i.e., it remains effective upon incapacitation).
• Clearly define the agent’s powers and responsibilities.

When Should You Create a Durable Power of Attorney?
The best time to establish a DPOA is when you are mentally competent and capable of making decisions. Waiting until health issues arise may complicate the process or even render it impossible due to legal competency requirements.

Choosing Your Agent Wisely
Selecting an agent is one of the most critical decisions when creating a DPOA. Your agent should be someone trustworthy, financially savvy, and willing to act in your best interests. Regularly reviewing and updating your DPOA ensures it aligns with your current wishes and circumstances.

In Texas, having a Durable Power of Attorney is more than just prudent—it’s essential. It provides continuity, security, and peace of mind by ensuring that your affairs are managed according to your wishes in the event of incapacity. Give us a call today to create or update your DPOA with our Estate Planning team. Your future self will thank you!

TRUSTS

NOT JUST FOR THE WEALTHY

A majority of people think that estate planning documents, such as trusts, are only for high-wealth individuals or families. As such, they might not often think about creating a trust, but there are still several reasons why having one could be beneficial, even on a smaller scale. Here are a few:

1. Asset Protection: A trust can help protect personal assets from creditors or other legal claims. This can be especially important if the individual faces financial hardship or legal challenges.
2. Medicaid Planning: For individuals who are aging or facing significant health issues, a trust can be used to help protect assets while qualifying for Medicaid or other public assistance programs.
3. Avoiding Probate: When someone passes away, their estate typically goes through probate, which can be a long and expensive process. A trust can help bypass this, allowing for a smoother transfer of assets to heirs or beneficiaries.
4. Ensuring Financial Support for Dependents: Even if someone has limited assets, they may want to ensure that dependents (like children, aging parents, or a spouse) are taken care of if something happens to them. A trust can specify how assets are distributed and ensure that those dependents are supported, even if the person has little wealth.
5. Control Over Distribution: With a Trust, an individual can specify exactly how and when their assets are distributed, which can be helpful if they have specific wishes, such as a gradual distribution to avoid making beneficiaries too wealthy too quickly.
6. Increased Financial Stability: For individuals with a modest income but some assets (e.g., a small home, life insurance policy, or savings), a trust can offer a way to manage and preserve wealth for the future, helping ensure that they leave something behind for loved ones.

Ultimately, a Trust can provide peace of mind for individuals, regardless of income, knowing their wishes will be honored and their assets protected. Our Estate Planning experts at Saunders, Walsh & Beard look forward to discussing this with you. To see what type of Trust would be best for your situation, give us a call today.