In a previous series of articles we covered the basics of estate planning. The articles
are no longer available on the Oakland Insider website but may be viewed on our
website by going to our “In the News” web page (see link below) and clicking on the
“Estate Planning” topic.
In the articles we pointed out that at a minimum, everyone needs a will, patient advocate
form and power of attorney. Should you become incapacitated, and unable to conduct
your own business affairs, a durable power of attorney gives authority to another
individual or individuals to act on your behalf.
Not too long ago, one of our clients sent me an email about problems she had
experienced. Here is what she said:
“Being a responsible planner I worked with my parents, their accountant, and their
attorney to make sure all the recommended information and documents were ready for
when needed. I have durable power of attorney - we even executed multiple copies with
original signature just in case.”
She went on to say:
“My father is now incapacitated, and we have one week to make decisions about his
care. My mom has a lot to handle, so the idea was I should gather financial info to help
with decision. I have discovered no one takes just the durable power of attorney
document - each investment house has its own form. Now that my Dad cannot sign
those forms I have to have some forms "certified signature" and some notarized. Not all
institutions have their forms online (Morgan Stanley), so I have to wait to have forms
mailed before I can even start the process. His pension administrator takes four to six
weeks to process once the forms are received!”
She suggested that her dilemma would be a good topic for one of our newsletters we
send to our clients. Her email reminded me of another problem several years ago with
an elderly relative who was confined to a nursing home and was unable to handle her
own affairs. We had to make a transaction in her bank account on her behalf. To our
despair, the bank wouldn’t honor it! In spite of our objections, we had to take a copy of
the bank’s power of attorney form and have our relative sign the document in order to
complete the transaction.
Many of you likely have authority to help your parents or other elderly relatives with their
business affairs, should they become unable to act in their own behalf. In some cases
you have probably prepared similar documents giving your children such authority to act
in your behalf. Take time now to list all of the possible financial institutions that you or
your designated representatives may have to deal with in the case of incapacity.
Contact each one to see if you need to execute a proprietary power-of-attorney form. A
bit of time spent now can make things a lot easier in a time of stress later.
And, do not forget to store your estate planning documents in a safe place and make
sure your loved one’s know where they are. A periodic review of your estate planning
documents (every 3-4 years, at a minimum) is also recommended, to make sure they still
reflect your wishes and are up-to-date.
David C. Patterson, CFP® and Erin Preston, CFP® are the owners of Patterson
Advisors, LLC, a fee-for-service-only financial advisory firm. Patterson Advisors, LLC is
a Registered Investment Advisor, registered with the State of Michigan, helping clients in
Waterford, Clarkston and Royal Oak, Michigan as well as other Oakland County,
Michigan communities . Visit www.pattersonadvisorsllc.com for more information or call
248-674-2108.
Published in the Oakland Insider, October, 2008
Your Power of Attorney May Be Powerless
By David Patterson and Erin Preston (formerly Patterson)