Appoint a Power of Attorney
By Saghir Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)
One of the most important tools of estate planning is a durable power of attorney. This tools allows you to designate someone who can make financial decisions on your behalf if you should become incapacitated. If you and your spouse are avoiding joint ownership for property because you have credit shelter trusts, granting each other durable powers of attorney is particularly important.
Without a power of attorney, the only other alternative is for a spouse to go to the courts and request to be appointed guardians for the ill spouse. Most medical emergencies require quick action, but getting an appointment with the court takes time. Power of attorney also tends to provide wider powers than guardianship.
Don’t Delay
Once you set up one or more of these estate planning vehicles, you’ll be on your way to protecting the assets you worked so hard for. More importantly, you will be saving your spouse and /or heirs from the headaches involved with probate proceeding.
Many of the documents that are key to estate planning must be drafted by an estate planning attorney. But your financial advisor can play a critical role as you develop and maintain your plan. For example, your advisor can help you find an experienced estate planning attorney. He or she can also help with some of the initial legwork, such as helping you asses the value of your property and identifying assets you may want to retitle so that they’re held in your spouse’s individual name. But the most important step in estate planning—particularly if you haven’t yet started the process - can only be performed by you. Start by raising the issue with your financial advisor sooner rather than later. Because while it may be a certainty that retirement and old age are many years off it’s the things that are uncertain for which estate planning helps you prepare.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)
