Tag: FPOA

Video

Hi, we’re back at Stautz Law. It’s Andy Stautz and today we are talking about estate planning and money.  

Is a Financial Power of Attorney Worth the Cost?

So the big question for a lot of people is why pay for estate planning? You know, getting a will written is expensive. Getting a trust written is even more expensive. You know: why do it?  

Well, the obvious answer is because it’s a good purchase. It’s an investment that saves you lots of money and time and trouble and worry. In the long run.  

So today’s example is just one piece of my basic estate plan package. You know, I don’t do individual little documents because I want to make sure my clients have a plan that that works as a whole. So even my most basic will-based plan, it’s not just the will, right? It’s the will, and healthcare advance directive, and a financial power of attorney, and then one deed, … for real estate.  

A Financial Power of Attorney as Insurance against Guardianship

A lot of people think, OK, it’s about the will. It’s about the will, yes. My point today is the financial power of attorney is underrated, underappreciated. Because. And a financial power of attorney having one in place is an is insurance against your being incapacitated later.  

Well, it doesn’t prevent you from being incapacitated, but it saves your children or family members or friends from having to get a guardianship to carry on your affairs after your incapacity.  

What Does a Guardianship Proceeding Cost?

So a guardianship proceeding is going to the court and saying. Please, Mr. Judge, please, Mrs. Judge, can you give me control over this person’s affairs?  

Well, that’s exactly what a financial power of attorney does. It gives someone else power over your affairs.  

But with the guardianship proceeding, you have to go to court. You know you have to pay a lawyer to show up. It’s expensive. You know, you’re probably paying at least $2000, probably more. Just for an uncontested, you know, emergency guardianship.  

So the financial power of attorney, which is just one piece of that will package, makes the whole thing worth it if it turns out you need it.  

Will Package Cost: $1,100
Guardianship Cost: $2,000+

So my point here is I really do believe in my work. I think it’s overwhelming value to my clients to have this plan in place, with, you know, these different pieces that work together. And, you know, we talk about probate costs all the time, but well, I save my clients guardianship costs too.  

How a Financial Power of Attorney Makes Life Easier

So I urge you to consider that as when you’re thinking about OK, is this something I can afford? Is this something I want to do right now? Hopefully that tilts the answer toward yes, because I really do think it’s the best thing for my clients. It saves them, you know, dollars, money. It also saves so much time and stress and panic. Because the moment you need it is the moment when everything’s gone wrong elsewhere, right? It’s going to be an emotional time. It’s going to be difficult.  

So having planned for it in advance is a real gift that you can give to the people you love. So I encourage you to talk to me about your situation and we can come up with the best plan for you. You can book online, you can give me a call. I look forward to talking with you about your specific situation. Thanks! And bye.