Del Mar California real estate
Have You Drafted a Power of Attorney?
by June Campbell
In these unsettled times, it's the sign of a smart business
owner to expect the best but prepare for the worst. What
will happen to your business if you are unavailable due to
any circumstance? Perhaps you are a Reservist and get called
into active duty, for example.
By drafting a Power of Attorney, you will be giving someone
the legal right to look after your business affairs if you are
unavailable, away, mentally incapacitated, or otherwise unable
to make business decisions.
Just as many individuals postpone writing a will, many business
owners avoid the step of drafting a Power of Attorney. Both
appear to have a superstitious belief that the act of preparing
for potential problems will attract misfortune.
When we apply the clear light of reason, we all know that
writing a will doesn't imply imminent death and drafting a
Power of Attorney doesn't suggest we'll be unable to operate
our businesses. Both are simply evidence of good planning.
What if an accident or an illness causes you lose the mental
capacity for a period of time? Without a Power of Attorney,
your family, colleagues and the courts will be pitted against
one another trying to straighten things out. Advance planning
will minimize the problems that will arise later.
Alternatively, perhaps you are planning to be away from your
business for an extended period. It's not something
we like to consider, but in the extended absences of an owner,
the potential for employee fraud or theft increases. You want
someone in charge who has your best interests at heart.
Naturally, you will want to consult a lawyer to discuss your
unique situation. However, the following considerations are
likely to be applicable in most cases:
1. When you draft a Power or Attorney, you must be "of sound
mind." Powers of Attorney can be revoked or modified, but again,
you must be deemed to be of sound mind. Documents drafting or
amending Powers of Attorney must be witnessed.
2. By drafting a Power or Attorney, you are giving the "donees"
the legal right to carry out transactions on your behalf. In most areas,
you can stipulate the powers that you are allocating. Typically,
Powers of Attorney include the right to sell or purchase real
estate and other assets, the right to make payments of bills and
debts, and the right to manage investments of various sorts.
3. Typically you can identify two people to have power of
attorney, as well as appointing a substitute in case something happens
to one of the first two. Some advisors recommend appointing three
donees to work jointly in the management of your affairs. Ideally,
one donee should be a family member or friend who has your best
interests at heart. The other should be someone who is connected
to the business and who is familiar with day to day operations.
The third recommended donee is the accountant who handles the
company's books.
4. When drafting the document, be very clear what powers you
are giving the donees. Avoid "gray areas" or areas that could
be open to interpretation.
5. Make sure that at least one of your donees knows where the
Power of Attorney document is kept.
6. In most areas, Powers of Attorney can be Continuing or
Limited. Continuing Powers of Attorney usually take effect
from the date of signing and remain in effect after a person
becomes incapacitated. Limited Powers of Attorney give the
donee authority to act only under certain circumstances. Limited
powers could include real estate transactions, complex investments
like term deposits, RRSP contributions, and so on.
June Campbell
How to Write Business Plans, Business Proposals,
JV Contracts,Human Resource Package, More!
No-cost ebook "Beginners Guide to Ecommerce".
Business Writing by Nightcats Multimedia Productions
http://www.nightcats.com
NOTE: The opinions expressed in this article are the author's own and do not necessarily reflect the opinions of this website or Brokerforyou/Promotions Unlimited.
Disclaimer: The information provided in this article is general information on the legal issues presented and should not be regarded as a substitute for individual legal advice from an attorney.
The above article is presented as a community service with the permission of the author.
Disclaimer
The information presented in this web site is of a very general nature, provided for general informational purposes only. It should therefore not be relied upon to address individual legal concerns, as each client's situation differs. Because each situation is different and the law is constantly changing, you should consult with a Lawyer well versed in this field. The benefits and risks of taking or not taking any legal action can be assessed only after consultation with a Lawyer. By providing the information in this web site, we do not intend to any make any promises or give any assurances about the outcome of your individual situation, and none should be presumed. Prior to retaining a lawyer, one should check with The State Bar. Any information provided or contact received from this web site does not constitute a client/Lawyer relationship.
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Editors Note - If you are seeking legal assistance, a real estate agent or broker is not the person to advise you! For qualified legal advice it is best to seek the guidance of a local California attorney. As a service to our readers seeking California legal advice, we have listed below a few legal directories that list California lawyers by the area of legal specialization. Plus, each directory provides numerous legal articles for reference. As laws are always changing and every person's individual circumstance differs, one should seek out the best qualified local legal assistance prior to making decisions that could prove to be very costly. Local city codes, state laws, and Federal laws can be quite complex. Proper, current legal advice, directly from an attorney could be considered prudent insurance for any major decisions. Many California attorneys do not charge for an initial consultation.
Some California legal advice sources are: San Diego attorneys - This legal directory is one of the most visited in the State. Los Angeles lawyers
Orange County attorneys - "Injured people with lawyers receive 3.7 times more than injured people without lawyers" Insurance Research Council National Survey of auto injury claims - Riverside lawyers - San Bernardino attorneys - San Francisco lawyers - Oakland attorneys -
Bay Area lawyers - "The United States is a nation of laws: badly written and randomly enforced." Frank Zappa
San Jose lawyers - Sacramento attorneys - Fresno lawyers - California attorneys - legal advice directory - San Diego lawyers articles
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