Along with a last will and testament, one of the most important documents to have in place is a Power of attorney in Hawaii. This type of document empowers a loved one to make important decisions when an individual is unable to do so. Here are a couple of reasons why this is such a good idea.
Financial Matters
One of the most important reasons for having a Power of attorney in Hawaii is that someone is able to continue managing financial affairs on behalf of the loved one. For example, if the individual is incapacitated for a time due to some type of accident, someone must manage his or her banking and investing activity, and make sure all debts are paid on time. Banks, brokers, and others will not accept instructions from someone who is not properly authorized to conduct transactions on behalf of their client. When a power of attorney is in place, this serves as legal authorization, and allows that person to take actions that are in the best interests of the loved one.
Avoid Lengthy and Costly Court Action
In situations where a power of attorney does not exist, someone will have to be appointed as a guardian by the court. This can be a lengthly and very costly process. In the interim, important decisions must be delayed until someone with proper authorization can make them. That could end up damaging the loved one’s finances or result in missed opportunities that would have provided a great deal of benefit. In addition, there is no guarantee that the person who is named as the guardian by the courts would be the loved one’s first choice. This can lead to further strife within the family that only paves the way for more confusion.
There are a number of ways to structure a power of attorney. Cheryl Takabayashi can help the client understand more about how different kinds of powers of attorney can be applied to situations like making medical decisions, managing finances, and even how to place specific limits on those functions. Since the cost of creating this type of document is extremely reasonable, doing so and making sure the document can be found easily in an emergency situation makes a lot of sense.
