Bob Carlson, in his Forbes column, writes that the Social Security Administration does not recognize durable financial powers of attorney. He then goes on to discuss the estate planning ramifications of this fact. His article begins as follows:
Social Security benefits are one of the items that fall through the cracks in many estate plans.
A financial power of attorney (POA) is an essential element of an estate plan. The POA ensures that someone manages your finances when you aren’t able to. Part of managing your finances is to manage your Social Security benefits, whether you already are receiving them or will apply for them in the future. What many people don’t realize is the Social Security Administration (SSA) doesn’t recognize POAs.
Instead, as part of your estate plan you need to contact the SSA and make an advance designation of a representative payee.
Created under a 2018 law, this feature allows a person to choose one or more individuals to manage the person’s Social Security benefits. The SSA then is required in most cases to work with the named individual or individuals. You can name up to three people as advance designees and rank them in order of priority. If the first one isn’t available or is unable to perform the role, the SSA will move to the next person on the list.
To see the full article, click: The Surprising But Essential Estate Planning Step For Social Security Benefits
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal..