This Blog Post Could Save Your Financial Life!

What would happen to your personal finances if you were incapacitated for a period of time?  Would your bills get paid?  Would taxes get filed on time?  Would you you get sued or your credit take a nosedive because nobody had the legal authority to access your money?  I got a big wakeup call on this very subject late in January and I learned some pretty important lessons that are worth sharing. If you have any kind of financial obligations in life, you’d best listen up - this could save your financial life.

Back in 2009, a very good friend of the family was dealing with breast cancer. At the time, she didn’t know how the disease or her treatment would affect her ability to manage her affairs, so she asked if I would step in if needed.  I said OK, and she had her attorney draw up what is known as a “Durable Power of Attorney” (POA) granting me the legal authority to manage her affairs.  As it turned out then, her treatment was effective, and I never had to step in.  The document was filed and forgotten.  Around the same time, my wife Denise suffered a stroke, and our social life took a big hit.  Our friend took another job in a different city, and we fell out of touch except for the occasional greeting on Facebook.

Fast forward to December of 2024.  Our friend suffered a brain bleed and ended up hospitalized - a traumatic brain injury is what it’s referred to.  This resulted in memory loss and, being hospitalized, she wasn’t able to manage her affairs. Her family tried their best to handle things, but in the days of ultra-high bank security, they weren’t able to access her funds. Someone remembered her saying that she had a signed POA, and I was somehow involved.  They hunted me down on Facebook.  I looked for and found the POA and sent it to the family and, after some discussion, it was agreed that I was in the best position to tackle the role.  It’s been an education to say the least. 

Imagine that you suffer a serious injury or disease that sidelined you, either temporarily or permanently.  Did you know that your spouse or significant other / family member / friends can’t legally access your accounts or assets unless their name is on the account or title? They can’t sell your assets if needed to pay your medical bills.  If you are smart like my friend was, you’ll find someone that you trust and have a POA drawn up and executed (signed and notarized) so that if something happens, your affairs can be handled efficiently and legally.  If this isn’t in place, it can take months to get a court ordered conservator appointed to manage your affairs.  As I’ve discovered, a POA is as important as having a Will or Advance Medical Directive.

Here’s are 5 big things a POA can do for you:

• You get to appoint someone that you trust (your agent) to manage your affairs, not just whoever is available or steps up in a crisis (qualified or not). This allows you to choose someone you trust to act in your best interests and follow your preferences.

• It helps to reduce and hopefully avoid family stress, anxiety and disagreements during an already extremely stressful time, and you can recover without having to worry about your financial affairs.

• The person you choose can step in quickly and prevent bad things from happening to your credit.  The last thing you need during your recovery is to be badgered by collection agencies calling on you and not caring that you are disabled.

• By clearly outlining the agent's powers and limitations, a power of attorney can help prevent unauthorized actions and protect you from potential financial exploitation.

• Your agent can interact with various agencies and companies on your behalf, resolving issues and making arrangements when you're unable to do so.

So, what’s the next step?  If you’ve already have a POA in place, sit back and relax or maybe share this post to others who might still need it.  If not, you can consult with a lawyer to see what’s required where you live or even use Legal Zoom or other online legal resources.  It may cost you a few hundred bucks, but if the time ever comes, it is a really important thing to have for both you and your family.  None of us are immune from things that can rob us of our independence and freedom, but this is one thing that you can do in advance to protect everything that you’ve worked for all of your life.

I welcome your thoughts and experiences in the comments below. Please share this post with others who value both humor and serious stuff about this blue marble that we all share.

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