In the movie “Groundhog Day,” Phil Connors finds himself repeating February 2nd over and over with no one else in the city of Punxsutawney, Pennsylvania aware of this strange phenomenon. Every day he goes to sleep and the wakes up to the same day with the same Groundhog Day events unfolding precisely as they did the day before. He has no fear of future events or consequences because he knows precisely what will occur within that day. Over time, Phil uses this strange time loop to his advantage. He uses it to improve himself, save lives, and help the people of Punxsutawney.

Unfortunately, no one can predict how each new day will influence our lives. We cannot anticipate every single event that will happen in our lives. To make matters worse, we flirt with risk as we go about our daily activities. Many of us are cautious and vigilant in minimizing risks, but risks can never be completely eliminated. Have you ever considered what would happen with your financial affairs if you became unable or unfit to manage your affairs? Would a spouse be able to fill in? Who would pay your bills, file your taxes, register your vehicles, manage your properties, and handle your investments?

A Durable Power of Attorney is a legal document that allows you to appoint an individual to oversee your affairs if you are unable to manage your own affairs due to incapacity or any other reason. This legal document is important because it allows you to determine who will manage your affairs rather than going through the expensive court process of appointing a guardian or conservator to do so. This person will be able to manage your bank accounts, investments, pay your bills, file your taxes, and even transfer assets to your trust. A Durable Power of Attorney allows you to select an individual that you can trust and count on to handle your financial affairs as you see fit. There is no such thing as “one-size fits all” model in terms of creating a Durable Power of Attorney, so it is important to customize your Durable Power of Attorney so it compliments your overall estate plan.

For additional reading:

Common Estate Planning Pitfalls

 

Cheap Estate Planning Isn’t Cheap

 

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