When Powers of Attorney Are Not Effective. We recommend that our clients have a General Durable Power of Attorney, naming an agent of their choice to manage their finances and other transactions if they become disabled or incompetent. Clients occasionally tell us, however, that their power of attorney was ineffective to access funds in an account or to sell or transfer real estate or other assets. The reason for this is simple: Your power of attorney only can be used for your personal assets (i.e., assets titled in your name, alone), and will not be effective for assets titled in the name of your Living Trust.
How can your trust assets be managed for you if you become incompetent? Your Successor Trustee (named in your trust) simply executes an Affidavit of Incapacitation acknowledging your incompetence, attaches a letter from your doctor verifying your incapacitation, and presents the Affidavit to each institution where you keep trust assets. Your Successor Trustee, then, can replace your name with his on your trust assets, becoming your trustee, and can manage your trust assets for you without a court hearing or court supervision. If you either don't have a General Durable Power of Attorney, or need it updated, please contact us at (801) 262-8889 or email us at firstname.lastname@example.org.
Wednesday, April 15, 2009
Historical Tax Returns. Would you like to see what income tax forms (and tax rates) looked like over the years? Go to: http://www.taxhistory.org/www/website.nsf/Web/1040TaxForms?OpenDocument and click on any year. In particular, examine the (low) tax rates on the 1913 return (and weep!).