Financial Directive ? Advanced Estate Tax Planning, Power of ...

I recently wrote about the

absolute need for a Medical Directive granting the ?exclusive power? to your agent for the purpose of communicating your wishes and health care to instruct those in charge of your medical care and to respond to the actual facts and variables known when in actual health care decision needs to be made. Your Medical Directive becomes effective, when:

1 You can not communicate your own wishes for your medical care:

A. Orally, as in writing, or C. Through gestures, and

2nd You are diagnosed to be close to death from a terminal condition, or to be permanently comatose, and

3rd The medical personnel attending to your care are notified of your written directions.

WHAT IS A FINANCIAL DIRECTIVE? To summarize, a ?medical? Directive is a legal instrument addressing the issue ( s) of your health care and a ?Financial? Directive is legally finance tool empowers your Agent over all your financial matters and to exercise or perform any act under a recognized that ?principal / agent? relationship, with power, duty or right of any obligation whatsoever over everything that you now presently have or may thereafter acquire in the future, Relating to any person, matter, transaction or property, real or personal, tangible or intangible, now owned by you or thereafter acquired by you, including, without limitation, general powers and specifically enumerated powers as possible to each event or circumstances.

In order for your Financial Directive to be legally binding on all third parties, third parties the Sun notified of your principal / agent relationship, your instrument must be in writing, properly witnessed or notarized with power to indemnify all those who accepted it in good faith.

Your Financial Directive should grant your agent full power and authority to do everything in exercising any of the Necessary powers

p> ESSENTIAL ESTATE TAX PLANNING. THE FINANCIAL DIRECTIVE

A Financial Directive should be part of your estate tax planning

Your Financial Instrument Directive should address the following general powers and specifically enumerate those powers as possible to each event or circumstance:

first Demand, receive, and obtain by litigation or otherwise, money or other thing of value to Which the principal is, may become, or claims to be entitled, and conserve, invest, disburse, or use anything so received for the purposes intended. ? / p> 2nd Contract in any manner with any person, on terms agreeable to the agent, to accomplish a purpose of a transaction, and perform, rescind, reform, release, or modify the contract or another contract made by or on behalf of the Principal.

3rd

Execute, acknowledge, seal, and deliver a deed, revocation, mortgage, lease, notice, check, release, or other instrument the agent to accomplish a desirable CONSIDERS purpose of a transaction.

4 Prosecute, defend, submit to arbitration, settle, and propose or accept a compromise with respect to a claim existing in favor of or against the principal or intervene in litigation Relating to the claim.

5

Seek on the principal?s behalf the assistance of a court to carry out authorized to act by your Financial Instrument Directive.

6 Compensate Engage, and discharge an attorney, accountant, expert witness, or other assistant as It Becomes Necessary or relevant to principal objective (s). 7th Keep records of Appropriate

each transaction, including receipts and disbursements to accounting of.

8 Prepare execute, and file a record, report, regulation, or other document the agent CONSIDERS desirable to safeguard or promote the principal?s interest under a government statute or governmental. 9th

Reimburse the Agent for expenditures properly made by the Agent exercising the powers granted by this instrument.

10 In general, do any other lawful act with respect to the subject at hand. WHEN DOES YOUR FINANCIAL DIRECTIVE BECOME EFFECTIVE? Your Financial Directive becomes effective when you are disabled or incapacitated Considered .

For purposes of Your Financial Instrument Directive, ?disabled or incapacitated? means when a physician certifies in writing at a date later than the date of your instrument was executed that, based on your physician?s medical examination of you! , your doctor declares you mentally incapable of managing your financial affairs.

Your Financial Directive should have a paragraph to ?legally authorize your / the physician? who examines you to disclose your physical or mental condition to another person for validation. You may even authorize a second physician for a second opinion. Subsequent to this verification and disclosure of your incapacitated condition taken, a third party that accepts your Financial Directive is fully protected from any action.

FINANCIAL DIRECTIVE TO GENERAL POWER OF ATTORNEY COMPARED

I reminded of the cases where the spouse is precluded to sit in important business meetings of temporarily incapacitated her husband Which was a member, and decisions were being made affecting her husband?s interest in the business. While a general power of attorney may have been sufficient, but more likely would have required further court action. The Financial Directive is a Significantly stronger instrument then a general power of attorney, and would have specifically addressed issues concerning the spouse?s ability to sit and vote with the agent, in decisions affecting the business, and more specifically her ownership interest in the business, with ability to bring in professional assistance to consult with her on important matters investigated.

CAUTIONARY PROVISIONS WITHIN YOUR FINANCIAL DIRECTIVE YOU WOULD NOT WANT YOUR AGENT TO HAVE

While we have enumerated the specifics of The powers to your agent, there are some powers you would not want your agent to have:

first Your agent can not execute a will or resorted codicil on your.

2nd Your agent can not execute any trust on behalf your; however, your agent can enter into a custodial agreement with another ?independent? individual or bank with trust powers

3. Your agent can not divert your assets to himself [or herself], his [or her] creditors or his [or her] estate.

4th Your agent shall not exercise, and shall not be vested with any incidents of ownership as to insurance policies insuring your life and shall have no power and no authority over life insurance policies you may on your own agent?s life. 5th Your agent is your FIDUCIARY, possessing no general or limited power of appointment. 6th Your agent shall not exercise any powers Which you received from your agent in a fiduciary capacity, and your Agent shall have no authority to exercise any powers, the exercise of Which would cause any of your assets to be Considered as taxable in your agent?s estate for The purposes of the federal estate tax or the inheritance tax.

Your agent shall have NO power to void or modify any portion of Your Financial Directive in any way whatsoever. Only the principal may revoke or amend by written notice to all parties and only by certified mail with return receipt.

id=?article-resource?> author bio ? Rocco Beatrice, CPA, MST, MBA award-winning
estate planning & trust expert MS
? Taxation, Master of Science Taxation MBA
? Management / Taxation
BSBA ? Management / Accounting CPA
? Certified Public Accountant ??

Irrevocable Trust Asset Protection, Estate Planning href=?http://ultratrust.com/financial-directive-powers-property.html?> Financial Directive Powers: Real Property , Business, Medicaid, Taxes, Personal Property
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