For example, if you are seriously injured in a car accident, your agent can handle your finances while you are unable to do so. This may include anything from paying your credit card bill to updating/approving portfolio allocations, accepting long term disability distributions or interacting with your employer.

In most situations, the same person is nominated to be your agent, successor trustee, and executor of your estate. That’s because these documents (and the titles) are tools for your fiduciary to use to handle any situation. This should be a person who you can trust to make important decisions on your behalf, particularly as it relates to your finances.
Importantly, a durable power of attorney for finances ends once the principal dies. At this point, your executor named in your last will and testament will be responsible for handling those non-trust financial matters related to your estate.

We know that most people aren’t interested in the minute details of their estate plan and don’t want to read legalese. That is why we are big on metaphors. Whenever possible, we try to explain our estate plans in a way that is easy to understand and makes practical sense.

We typically describe estate planning as being like a road trip. In this metaphor, the living trust is the vehicle and the ancillary documents are parts of the vehicle. The vehicle and its various components are necessary to get you where you need to go – but they should never be mistaken for the trip itself.

Instead, we ask you to focus on where you want to go. Put another way, we want to know what success looks like for you when contemplating the management of your assets, the caring of your responsibilities and the distribution of your assets when you die. If your estate plan is done correctly, what goals will you have accomplished in these areas?

A durable power of attorney for finances is a part of the vehicle. It is a necessary part of your road trip, but it isn’t the main thing. Its purpose is to allow your non-trust finances and other responsibilities to be managed when you are unable to do so yourself.

When you view your living trust together with your last will and testament and power of attorney, you will see that they cover any situation that arises within the sphere of assets management, interactions with third parties such as the government, your employer, your business partner, or creditors, and even updating your plan documents to account for unaccounted-for scenarios such as special needs beneficiaries, assets left out of trust or lost documents.

Just like a car wouldn’t necessarily work without all of its parts, a trust-based estate plan isn’t effective without all of these components. While we firmly believe that an estate plan should be about more than the documents, it is important to remember that these ancillary documents are necessary to get you where you want to go.

A durable power of attorney for finances is one component of a comprehensive trust-based estate plan. With this document, you can be assured that even if something happens to you, your finances and other responsibilities will be handled. Because your designated agent is often your successor trustee and executor as well, they will be aware of your wishes and can maintain continuity during your incapacity and beyond.

Based in San Francisco, Blacksburg Law works with individuals and families throughout the Bay Area and California. We offer estate planning services on a flat fee basis so that our clients can take full advantage of our process without worrying about running up a massive bill. Founder Michael Blacksburg is well-known for his innovative approach to estate planning that helps clients truly think about and work through what a successful estate plan means to them. To learn more or to schedule a consultation, give us a call at 415-508-5600 or fill out our online contact form.