Financial Directive Powers: Real Property, Business, Medicaid, Taxes, Personal Property

Real Property, Business, Medicaid, Taxes, Personal Property

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Financial Directive powers and how it differs from Power of Attorny. Financial Directive powers in real property, personal property, banking poweres, tax returns, family maintenance and social security issues like Medicare and Medicaid.

What if I already have a power of attorney? How will the financial directive help me still? A boilerplate power of attorney is intended to give your agent general powers. A Financial Directive has very specific powers granted by the Principal (you) to the Agent, as for example but NOT all inclusive:
  1. Collection powers to forgive, request, demand, sue for, recover, collect, receive, hold all such sums of money debts, dues, commercial paper, checks, drafts, accounts, deposits, legacies, bequests, devises, notes, interests, stock certificates, bonds, dividends, certificates of deposit, annuities, pension, profit sharing, retirement, social security, insurance and other contractual benefits and proceeds, all documents of title, all property, real or personal, intangible or tangible property and property rights, and demands whatsoever, liquidated or unliquidated, now or hereafter owned by, or due, owing, payable or belonging to, you or in which you have or may thereafter acquire an interest.
  2. Real Property Powers to bargain, contract, agree for, option, purchase, acquire, receive, improve, maintain, repair, insure, plat, partition, safeguard, lease, demise, grant, bargain, sell, assign, transfer, remise, release, exchange, convey, mortgage and hypothecate real estate and any interest in it (and including any interest which you hold with any other person as joint tenants with full rights of survivorship, or as tenants by the entireties), lands, tenements and hereditaments, for such price, upon such terms and conditions, as your Agent shall determine. You can add more specific powers addressing potential circumstances more specific to your circumstance.
  3. Personal Property Powers to bargain, contract, agree for, purchase, option, acquire, receive, improve, maintain, repair, insure, safeguard, lease, assign, sell, exchange, redeem, transfer, mortgage, hypothecate and in any and every way and manner deal in and with goods, wares, merchandise, furniture and furnishings, automobiles, bills, notes, debentures, bonds, stocks, limited partnership interests, certificates of deposit, commercial paper, money market instruments, and other securities, chooses in action and other tangible or intangible personal property in possession or in action, for such price, upon such terms and conditions, as your Agent shall determine…and more specifically to your circumstance.
  4. Banking Powers to make, draw, sign in your name, deliver and accept checks, drafts, receipts for moneys, notes, or other orders for the payment of money against, or otherwise make withdrawals from any commercial, checking or savings account which you may have in your sole name or in joint name with your spouse or other person(s), in any bank or financial institution, for any purpose which your Agent may think necessary, advisable or proper; and to endorse and negotiate in your name and deliver checks, drafts, notes, bills, certificates of deposit, commercial paper, money market instruments, bills of exchange or other instruments for the payment of money and to deposit same, as cash or for collection, and cash into any commercial, checking or savings account which you may have in your sole name or in joint name with your spouse or other person(s), in any bank or financial institution and to carry on all your ordinary banking business. Specifically, you, the Principal empower your Agent to do all of the following:
    1. Continue, modify, and terminate an account or other banking arrangement made by or on behalf of the Principal.
    2. Establish, modify, and terminate an account or other banking arrangement with a bank, trust company, savings and loan association, credit union, thrift company, industrial loan company, brokerage firm, or other financial institution selected by the Agent.
    3. Hire or close a safe deposit box or space in a vault.
    4. Contract to procure other services available from a financial institution as the Agent considers desirable.
    5. Withdraw by check, order, or otherwise money or property of the Principal deposited with or left in the custody of a financial institution.
    6. Receive bank statements, vouchers, notices, and similar documents from a financial institution and act with respect to them.
    7. To have access to any safe deposit box of which you are a tenant or co-tenant with full power to withdraw or change from time to time the contents of it; and to exchange or surrender the box and keys to it, renew any rental contract for it, and to do all things which any depository, association or bank or its agents may require, releasing the lessor from all liability in connection with it.
    8. Borrow money at an interest rate agreeable to the Agent and pledge as security personal property of the Principal necessary in order to borrow, pay, renew, or extend the time of payment of a debt of the Principal.
    9. Make, assign, draw, endorse, discount, guarantee, and negotiate promissory notes, checks, drafts, and other negotiable or nonnegotiable paper of the Principal, or payable to the Principal or the Principal’s order, receive the cash or other proceeds of those transactions, and accept a draft drawn by a person upon the Principal and pay it when due.
    10. Receive for the Principal and act upon a sight draft, warehouse receipt, or other negotiable or nonnegotiable instrument.
    11. Apply for and receive letters of credit, credit cards, and traveler’s checks from a financial institution, and give an indemnity or other agreement in connection with letters of credit.
  5. Tax Returns. To prepare, execute and file tax reports, tax returns, tax declaration, tax forms and tax statements for any and all tax purposes including income, gift, real estate, personal property, intangibles tax, single business tax, or any other kind of tax whatsoever, to pay such taxes and any interest or penalty or additions to make and file objections, protests, claims for abatement, refund or credit in relation to any such tax proposed, levied or paid; to signify, as may be required by the 1986 United States Internal Revenue Code, as amended, or any corresponding future United States law, your consent to having one-half of any gift(s) made by your spouse considered as made by you to represent you and to institute and prosecute proceedings in court or before any administrative authority to contest any such tax in whole or in part or for recovery of any amount paid in respect of any such tax, to defend or settle any amount paid in respect of any such tax, to give full and final receipt for any refund or credit and to endorse and collect any check or other voucher; to pay any and all such taxes and any interest, penalty or other additional amounts; to employ attorneys, accountants or other representatives and grant powers of attorney or letters of appointment for any of the purposes stated…(omitted for this article)
  6. Personal and Family Maintenance. Principal empowers the Agent to do all the acts necessary to maintain the customary standard of living of the Principal, the Principal’s spouse, Principal’s intimate partner, domestic partner, children, and other individuals customarily or legally entitled to be supported by the Principal, including providing living quarters by purchase, lease, or other contract, or paying the operating costs, including interest, amortization payments, repairs, and taxes on premises owned by the Principal and occupied by those individuals.
  7. Business Interests. To continue to conduct or participate in any business in which you may be engaged, or to carry out, modify or amend any agreement to which you may be a party, and to sell, exchange, modify or terminate such interest to or with such person or persons as your Agent may deem proper and on such terms and with such security as your Agent may deem appropriate. Execute partnership agreements, and amendments. Incorporate, reorganize, merge, consolidate, recapitulate, sell, liquidate or dissolve any business. Elect or employ officers, directors and Agents to carry out the provisions of any agreement for the sale of any business interest or the stock in it. And more specifically the Principal empowers the Agent to do all of the following:…(omitted for this article)
  8. Social Security and Government Benefits Medicare, Medicaid, or other Governmental Programs, or Civil or Military Service, to prosecute, defend, submit to arbitration, settle, and propose or accept a compromise with respect to any benefits the Principal may be entitled to receive. Receive the financial proceeds of a claim of the type described in this section, conserve, invest, disburse, or use anything received for a lawful purpose. To make application to any governmental agency for any benefit or government obligation to which you may be entitled. To endorse any checks or drafts made payable to you from any government agency for your benefit, including any Social Security checks.
  9. And so on, and so on, and so on. For purposes of this article, this writer’s intention is to demonstrate the level of specificity customized to your specific needs. If you require consultation, please call Estate Street Partners toll-free at 888-938-5872.
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