<p>DH and I are doing wills, medical directives and power of attorneys. (don’t flame me asking why now! I know we should have done it a long time ago!)</p>
<p>We were wondering…if we have everything set up jointly, and have correct beneficiaries on 401ks, IRAs - what is the benefit of having each other set up as each others POA?</p>
<p>Just wonderin’.</p>
<p>meant to post this in Parents Cafe…oops</p>
<p>The POA applies BEFORE you die. If one of you is in a coma, or has a stroke and becomes aphasic, or has dementia, the other one needs to be able to do things like having both joint owners sign a deed to sell a property, or change IRA beneficiary designations, etc.</p>
<p>My friend’s husband had a traumatic head injury and was in a long-term care facility. The cable bill was in his name only. The cable company would not let her change the options on the cable package because she wasn’t listed on the bill.
After I heard this story, we made sure that both of our names were on all of our house-related accounts.</p>
<p>poa is for while you are living. It allows you to act on that persons behalf in regards to certain things, basically. Make changes to bank accounts, insurances, etc. Depending on what kind of POA it is.</p>
<p>We have used POA for more things than I can count. I was sick as a dog when DH had to go out of town to close on a house we owned several states away. Enter POA and I didn’t have to go. We’ve used them to sell cars we owned jointly when only one of us was there. I’ve used it to take care of things on the cel-phone account when he was out of the country because no matter how many times we tell AT&T I am an authorized person on the account, no matter how many things he signs, I am told every time I try to do something he is the primary account holder. Could it have waited, yes, but the POA made it much easier. These were not the original intended uses for the POA, but they have come in handy. I can’t imagine NOT having one. This actually reminds me that I need to have one written for my 19yo son to act on his behalf.</p>
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I’ve had one on my D since she turned 18. Recently I signed her lease while she was in Europe, filled out loan docs for med school while she was in Europe, made her utility arrangements while she was in Europe. I’m sure you get the picture. </p>
<p>**The following is not legal advice and no attorney client relationship is being formed by this post. Do not rely on what is posted here. Consult an attorney. I am not your lawyer. We’re just chatting. ** 
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<p>In my office, after we finish the interview, we write two POA’s regularly (and on occasion, a non-Durable POA). A medical POA and a Durable POA for everything else. Both are essential documents IMO. The “Durable” designation on a POA means it withstands later incapacity or incompetence while a regular POA does not. (You can’t have a contract with an incompetent so once you become incompetent to act, the POA ends.) A Durable POA can take effect immediately (acting like a regular POA) or only upon your incompetence or incapacity as such is defined in the POA. Your state may have different rules…but they won’t be that much different. </p>
<p>CAVEAT: Do NOT use online document preparers or programs. While the docs themselves may be OK, it’s the questions we ask before we suggest a particular document (or clause within that document) that you are paying for when you pay us. A chimp can input data into these programs. That’s not the hard part. The hard part is knowing what questions to ask before you start selecting options and hitting the keys.</p>
<p>Oh, I re-read the OP. I don’t know if I answered the question. D’uh. Got side-tracked. </p>
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Answer: “Life” happens. Things change. What is set up correctly today, can be incorrect by tomorrow. And often is. ;)</p>
<p>Your beneficiary might start shooting heroin and you might not have wanted to leave her a big wad of un-controlled cash. You might have wanted to set up a trust for the benefit of a spendthrift. You might have tax issues with changing tax laws unforseeable at this time…you get the picture.</p>
<p>Great info…this is exactly what I was looking for.</p>
<p>@curmudgeon - Great information. Thanks. We do a lot of things ourselves (taxes, etc.), but these are things we gladly pay an attn’y for. We had the first POA drawn up before we were married at the beginning of the Gulf War. DH was on AT with the National Guard with the 82nd Airborne when they were suddenly called out. Literally gone within hours. He was told to go home and ‘get his affairs in order’. If that won’t scare the snot out of a young couple, I don’t know what does. It was good advise for a number of reasons.</p>
<p>We never like to think about these things but it is also good to check with our parents and see if they have living wills, do they have advanced directives, do they wish to appoint a POA to an adult child. They may not have thought of it. I remember my mom going over these things with me many years ago because she’s single. I hated it and closed my ears. But I knew where everything was, who to call, am jointly on all of her accounts. It’s not something anyone wants to deal with but I do appreciate that my mom has had the foresight to do these things. When there is an emergency I will be able to take care of her, and worry less about the legal web of issues. Everyone’s situation is different and this is not intended to be all-encompassing. Simply a reminder that we do need to communicate with our parents about these things as well as our spouses.</p>
<p>Thanks for reminding us of an important issue pumpkin65!</p>
<p>To me, having these things in order are a gift to those left behind, or are dealing with someone who has been incapacitated. I just observed one of my parents help their dying childless sibling through a sudden hospitalization and subsequent death…she had everything in order. My parents had so much to deal with during that time (I also have a disabled sib they care for) they could not have helped her as much as they did without the POA and medical directive.</p>
<p>I understood why she, as a single person, had the POA. I wasn’t sure how a married couple with everything titled jointly,etc, might benefit from one. </p>
<p>How could a spouse abuse one if these if a marriage turns bad? I guess the smart thing to do is just revoke it quick?</p>
<p>And thanks to another poster who mentioned having their child sign one. Gotta do that.</p>
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<p>This is a good question for the attorney that prepares it.</p>
<p>With the same disclaimers above, </p>
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The same way he can wipe out your bank accounts without a POA now. IOW, quickly. </p>
<p>But, the attorney-in-fact named in the POA owes a fiduciary duty to you. That duty is very substantial and self-dealing in contravention of your interests will be dealt with harshly. Breaches of fiduciary duty can also rise to the level of a criminal act. You’d be in much better shape in subsequent litigation if he was acting under a POA than if he was cleaning out the marital bank accounts, IMO.</p>
<p>H and I are doing wills, medical directives and power of attorneys. (don’t flame me asking why now! I know we should have done it a long time ago!)</p>
<p>Don’t feel bad- we have never even had life insurance :o</p>
<p>Yea, these are issues we need to work on too. Had written a draft of a will way back when we got married decades back but never finalized or signed ANYTHING! Yikes! Oh well, will get going on all of this. Good thread!</p>
<p>We have had POA’s on each other for years. So handy if any type of legal document needs to be signed when one of us is travelling, etc.</p>
<p>We also have given POA on ourselves to our recent college grad son, who is extremely financially (and otherwise) responsible.</p>