After drafting your Durable Power of Attorney for Finances, there are essential final steps to completing the document. Accordingly, these final steps include the following:

1. Validate the document.
2. Decide what to do with the document.

Although both steps are fairly simple to complete, state law determines how to complete each step. Additionally, as mentioned in the article Additional Considerations for Your Durable Power of Attorney for Finances, deciding what to do with the document depends on the type of document you chose to complete. Regardless, after completing the final steps, you will have an effective Durable Power of Attorney for Finances.

Final Steps: Validating the Document

Of the two final steps, validating your Durable Power of Attorney for Finances is the most important. Without validation, the document remains useless. So, most states require the following to validate your document:

• You must sign the document in front of two competent adult witnesses.

• A notary commissioned by your state must notarize the document.

Even if your state doesn’t require a notarized Durable Power of Attorney for Finances, you should still have it notarized. Unfortunately, many institutions refuse to recognize a Durable Power of Attorney for Finances lacking a valid notary stamp. For that reason, it’s typical to have your Power of Attorney for Finances notarized regardless of state law.

Final Steps: What to do with the Document

After validating your Durable Power of Attorney for Finances, you must decide what to do with the document. Fortunately, the decision is straightforward and depends upon the type of document you chose to complete. If you drafted your Durable Power of Attorney for Finances to be effective immediately, you have the following options:

• Provide the original document to your agent.

• Optionally, you can distribute copies to the people and institutions that your agent will have to deal with. Having the document on file will prevent hassles for your agent.

Conversely, if you drafted a Springing Durable Power of Attorney for Finances, do the following:

• Keep the original document to yourself.

• Store the document in a safe place where your agent can access quickly if needed.

Additionally, if either type of Durable Power of Attorney for Finances grants power over real estate, most states require that you record or register a copy of the document with the land records office in the county where the real estate exists. The recording or registering of the document needs to happen soon after the document becomes effective.

When Does the Durable Power of Attorney for Finances End

Typically, your Durable Power of Attorney for Finances ends at your death. However, there are other ways your Durable Power of Attorney for Finances may end:  

1. You revoke the document.
2. If you divorce your spouse and your spouse is the agent.
3. A court determines the document is invalid.
4. No agent exists.

Finally, to keep continuity in your estate plan, it’s best if your agent also serves as your executor. If your agent had to act on your behalf before death, the transition to a new executor may be confusing. Therefore, to avoid a confusing start to the estate administration, have your agent also serve as your executor.

Was this article helpful? Do you know what to do with your Durable Power of Attorney for Finances? Share your comments or questions in the comment box below. 

Reference

Durable Financial Power of Attorney: How It Works – By Shae Irving, J.D. Nolo.com

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Plan Your Estate– Plan Your Estate will provide complete guidance in drafting an effective Durable Power of Attorney.