Chambliss, Bahner & Stophel, P.C. has made available for download their article, Why You May Need a Trust in Addition to a Power of Attorney, published in JDSUPRA. The abstract is as follows:
While everyone should have a durable power of attorney that appoints someone to act for them if they become incapacitated, in some circumstances it is not enough. In these cases, a revocable trust can help.
A durable power of attorney allows you to appoint someone you trust to step in for you to handle financial and legal matters if you become incapacitated. We all are at risk of incapacity from illness or injury, whether temporary or permanent. Of course, this risk rises as we get older. Without someone in place to handle legal and financial matters, bills can go unpaid, contracts can’t be signed, homes can’t be refinanced, leases can’t be terminated, investments go unmonitored and unadjusted, and families often fight over who is in charge. The remedy of seeking court-appointed conservatorship is expensive, cumbersome, and time-consuming. It’s best that you pick your own person or people for this role.
Nevertheless, however important taking this step can be, it’s not always enough. There are two reasons for this: financial institutions often don’t honor older powers of attorney and agents sometimes don’t step in until it’s too late. Both problems can be remedied through the use of a revocable trust.
Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.