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What should I know about when a power of attorney goes into effect?
Oct 20, 2022
What should I know about when a power of attorney goes into effect?
Power of attorney (POA) is the authority given to one or more persons, called agents, to act on behalf of another person, known as the principal.
POA transfers decision-making to the agents for different reasons. It could cover instances when the principal is traveling or ill or if they are temporarily or permanently incapacitated.
Agents can be attorneys, family members, partners, financial managers, or anyone else named in the power of attorney contract. The POA agreement can also specify the level of decision-making powers and the areas that the agent gets to control.
Most POAs cover healthcare decisions or financial matters. Here is what happens once a power of attorney contract goes into effect.
When does power of attorney go into effect Edison, New Jersey?
Once the parties sign a power of attorney agreement, it goes into effect immediately unless the contract declares a different start date. The powers are limited to the duties stated in the contract. It is also important to explicitly state the duration of the agreement. For example, someone can grant financial power of attorney while they undergo a medical procedure. In this instance, they may only want to power to last until they recover and leave the hospital.
Power of attorney can be an important choice. If you become incapacitated, and you have not named someone as your agent, a court may select someone to make decisions on your behalf. If you want to be sure that you choose an agent who you trust to respect your wishes, it is best to draft a power of attorney contract early and ensure it goes into effect immediately. It will cover you if you get into an accident or have a sudden illness and are unable to make medical or financial decisions for yourself.
You should understand that decisions about POA agents are not final. You can cancel power of attorney at any time and select someone else to represent you.
When and how does power of attorney end?
You can set up power of attorney so that it has an expiration date, or you can name a specific action or set of actions an agent can take that will cause them to lose power.
In most cases, however, you revoke power of attorney by creating another document. If you wish to completely end POA, you can create a revocation of POA document, which ends the agent's powers. You can also create a new POA contract, which nullifies the previous one and grants POA to a different agent.
In some cases, durable power of attorney can last until the principal dies unless it is explicitly revoked. This can occur when you want someone to handle your estate as you grow older.
How to set up power of attorney
The steps for setting up a POA can vary depending on the details of your plans and your location. However, in most cases, you will follow the same general steps:
- Choose an agent. You should opt for someone you can trust to be calm, and impartial, and follow your wishes.
- Download the POA template or get it from an attorney's office. It can be good to consult an attorney to ensure you have the correct documents because requirements vary by state and type of POA.
- Fill out the document, ensuring you explicitly state any details about decision-making powers and duration. Attorneys can be helpful during this step. They can help you use correct terminology that cannot be misinterpreted by agents or a court.
- In almost all cases, POA agreements require notarization. That means you need to sign the document in front of a notary before they stamp it.
- Some states allow verbal power of attorney. Even if this option exists in your location, a written document is better to avoid confusion and ensure clear directions.
- Fill out duplicate copies of the power of attorney document and give one to your attorney, one to the court, and keep one for yourself. Some states require that power of attorney be filed in court before they are made legal.
Healthcare and financial powers of attorney
For individuals, there are typically two areas that could require power of attorney: healthcare and wealth. Here is a look at these two categories.
Healthcare power of attorney
A principal can choose to have a durable power of attorney for someone to make health-related decisions on their behalf. This type of POA agent is also called a health proxy.
The decision-making powers usually start when the principal can no longer make their own medical decisions. In most cases, you cannot give a direct caregiver, such as your physician or nurse, healthcare POA. It must be someone else.
You can replace an agent or draft a new healthcare POA at any time, but it is always good to have one in case of an unexpected accident or illness.
Financial powers of attorney
Someone with financial powers of attorney can make money and estate-related decisions for you. In cases involving incapacitation, an agent can pay your bills and taxes and manage your assets.
You can have multiple financial POAs. This is common if you own a business. In some cases, an agent can simply make day-to-day business decisions for a business owner when they are on vacation or have a short illness.
You can have different powers of attorney for financial and healthcare matters, and these will typically be separate documents.
Do you need a lawyer to grant power of attorney in Edison, New Jersey?
It is possible to fill out a POA document and have it notarized. However, you may want to consult an attorney to ensure you use the correct terminology and include details about the type of actions that could nullify the agreement.
If you have questions about power of attorney, contact us today for a consultation.
The Benefits of Filing for Chapter 7 Bankruptcy with Velasco Law Office
Deciding to file for bankruptcy is never an easy decision, but for many individuals and businesses in New Jersey, it can be a necessary step in order to regain financial stability. Chapter 11 bankruptcy is often seen as a last resort, but knowing when it's time to consider this option can help prevent further financial decline. In this blog post, we will discuss the signs that indicate it may be time to file for Chapter 11 bankruptcy in New Jersey. The first sign that you may need to file for Chapter 11 bankruptcy is if your debts have become overwhelming and you are struggling to keep up with payments. If you find yourself constantly falling behind on bills or unable to negotiate more favorable repayment terms with creditors, it may be time to consider bankruptcy. By filing for Chapter 11, you can restructure your debts and create a plan to repay them over time, giving you the breathing room needed to get back on track financially. Another indication that Chapter 11 bankruptcy may be the right choice for you is if your business is facing lawsuits from creditors or suppliers. Filing for bankruptcy can put a stay on these legal actions and give you the opportunity to negotiate more favorable terms with creditors. This can help prevent further financial strain on your business and allow you to focus on restructuring your operations for long-term success. If you are struggling with cash flow issues and are unable to meet payroll or other financial obligations, it may be time to consider filing for Chapter 11 bankruptcy. By reorganizing your debts and creating a realistic repayment plan, you can alleviate some of the pressure on your finances and work towards a brighter future for your business. Consulting with a bankruptcy attorney in New Jersey can help guide you through this process and ensure that you are making informed decisions about your financial future. Additionally, if your business has experienced a sudden drop in revenue or faced unexpected expenses that have put a strain on your finances, filing for Chapter 11 bankruptcy may be the best course of action. This type of bankruptcy allows businesses to continue operating while they work towards repaying their debts, providing some much-needed relief during challenging times. By seeking professional guidance from a bankruptcy attorney in New Jersey, you can navigate the complexities of this process and make informed decisions about your financial future. In conclusion, knowing when it's time to file for Chapter 11 bankruptcy in New Jersey requires careful consideration of your financial situation and future prospects. If you find yourself overwhelmed by debt, facing legal action from creditors, struggling with cash flow issues, or experiencing unexpected financial challenges, it may be time to consult with a bankruptcy attorney about your options. While filing for Chapter 11 bankruptcy is not an easy decision, it can provide the relief needed to address financial difficulties and work towards a fresh start. Don't hesitate to seek professional advice and take control of your financial future today.
Death is an inevitable part of life that we all must face at some point. While it may be a difficult and uncomfortable topic to discuss, it's important to plan for the future and ensure that your assets are distributed according to your wishes. One way to do this is by creating a will. However, many people put off making a will, either because they think they're too young or healthy to worry about it or because they simply don't want to think about their own mortality. But what happens if you don't get around to making a will in New Jersey? Let's take a closer look. If you die without a will in New Jersey (also known as dying intestate), your assets will be distributed according to the state's laws of intestacy. This means that the court will appoint an administrator who will distribute your assets among your surviving heirs based on their relationship to you. For example, if you are married with children, your spouse and children would likely inherit everything equally. If you are unmarried with no children but have living parents, your parents would inherit everything. However, there are some exceptions and complications that can arise when distributing assets through intestacy laws. For example, if you have step-children or foster children whom you haven't legally adopted, they may not be considered legal heirs and therefore wouldn't receive any inheritance under the law. Additionally, if you have debts or outstanding taxes at the time of your death, those debts must be paid before any assets can be distributed. Another issue that arises when dying intestate is probate. Probate is the legal process by which a deceased person's estate is settled and their assets are distributed according to their wishes (if outlined in a will) or according to state law (if there is no will). When someone dies intestate, the probate court will appoint an administrator to oversee the distribution of assets. This process can be time-consuming, costly, and stressful for your loved ones who are left behind. So how can an attorney help? An experienced estate planning attorney can help you create a comprehensive estate plan that includes a will, trusts, and other documents that ensure your assets are distributed according to your wishes. They can also help minimize taxes and avoid probate altogether. Hiring an attorney may seem like an unnecessary expense, but it's important to remember that the cost of not having a proper estate plan in place can far outweigh the cost of hiring an attorney. While no one likes to think about their own mortality, creating a will is an essential part of planning for the future. By taking the time to make a will and other estate planning documents with the assistance of an experienced attorney, you can ensure that your assets are distributed according to your wishes and avoid any unnecessary complications or costs for your loved ones after you're gone. Don't wait until it's too late – start planning today!
How Long Does Probate Take in New Jersey?
The Benefits of Filing for Chapter 13 Bankruptcy: A Guide for New Jersey Residents
Estate planning is often overlooked and neglected by most individuals. While it's hard to think about what will happen after we pass away, it's an important matter that shouldn't be ignored. If you don't have an estate plan, your assets and property are distributed according to state laws, which may not coincide with your wishes. In this blog post, we'll explore the consequences of not having an estate plan in New Jersey, what probate is and how it works, and how an attorney can help. If you pass away without an estate plan, your assets and property will go through the probate process. Probate is the court-supervised process of settling and distributing a deceased person's assets and property. In New Jersey, such proceedings usually take at least a year, but they can often be delayed for much longer. During the probate process, your assets will be distributed according to the state's intestacy laws. These laws list out the hierarchy of potential heirs, which starts with spouses and children, followed by parents, siblings, grandparents, and so on. If you have no living heirs, your assets will go to the state of New Jersey. If you don't have an estate plan, you may have to pay higher estate taxes. In New Jersey, the state estate tax exemption, which is the amount an individual's estate is allowed to be worth before taxes are imposed, is only $675,000. If your estate is worth more than that, it will be subject to estate taxes. Estate taxes can be as high as 16 percent in New Jersey, which can significantly reduce the amount of your estate that is available for distribution to your heirs. However, with proper estate planning, you can reduce or eliminate estate taxes. When you have an estate plan in place, you will have more control over how your assets are distributed after you pass away. You can designate the beneficiaries of your assets and property, set up trusts to protect your assets, and name guardians for your minor children. Moreover, if you have a business, you can name your successors and set up a plan for the transition of the business to them. An estate planning attorney can help you avoid the pitfalls of not having an estate plan. They can guide you through the process of creating a will or trust and make sure your assets are distributed in the way you intended. A good attorney can help you minimize your tax burden by creating trusts or other tax-saving methods. Additionally, if you have minor children or children with special needs, your attorney can help create a plan that meets their unique needs. In conclusion, it's crucial to have an estate plan in place to protect your assets, minimize taxes, and ensure your family's well-being after you pass away. Failure to have one can lead to your assets being distributed according to New Jersey's intestacy laws, which may not serve your wishes and can result in hefty tax bills. Consulting with an experienced estate planning attorney can help you prepare an estate plan that conforms to your wishes and protects your assets. Take the first step today and contact an estate planning attorney in your area.
Running a business is no easy feat, especially in today's challenging economic climate. Despite your best efforts, factors beyond your control may have led your New Jersey business toward financial ruin. While there are many reasons why a business may file for bankruptcy, Subchapter 5 offers a unique opportunity for small businesses to restructure their debts and reorganize their operations. In this blog, we'll explore the requirements and benefits of Subchapter 5 bankruptcy in New Jersey, so you can make an informed decision for your business. What is Subchapter 5 bankruptcy? Subchapter 5 bankruptcy is a type of reorganization bankruptcy introduced by the Small Business Reorganization Act of 2019. This type of bankruptcy is designed specifically for small businesses with debts under $7.5 million, whose owners wish to restructure their debts and avoid liquidation. Subchapter 5 bankruptcy is typically quicker, less expensive, and more accessible than a traditional Chapter 11 bankruptcy, making it a popular choice for small businesses. What are the requirements for Subchapter 5 bankruptcy in New Jersey? To qualify for Subchapter 5 bankruptcy in New Jersey, your business must meet several requirements. Firstly, your business must be a corporation, partnership, or sole proprietorship. Secondly, your business must be engaged in commercial or business activities. Thirdly, your debts must be no more than $7.5 million. Fourthly, you must be able to demonstrate that your business requires restructuring due to financial hardship. Finally, you must be willing to propose a plan for repayment through the bankruptcy court. What are the benefits of Subchapter 5 bankruptcy for New Jersey businesses? There are several benefits of filing for Subchapter 5 bankruptcy in New Jersey. Firstly, this type of bankruptcy allows you to retain ownership of your business and reorganize your debts, while still remaining in control of your business operations. Secondly, Subchapter 5 bankruptcy proceedings can be completed in a shorter time frame than other types of bankruptcy, typically lasting around 90 days. Thirdly, Subchapter 5 bankruptcy allows for less complicated and costly legal procedures and can be less burdensome on small business owners. Subchapter 5 bankruptcy also provides several specific benefits for New Jersey businesses. One such benefit is the new ability to modify commercial real estate leases. Previously, businesses could not modify commercial real estate leases in bankruptcy, but Subchapter 5 has changed this, allowing businesses to renegotiate leases to better fit their current financial situation. Another significant benefit of Subchapter 5 bankruptcy is the ability to have a court-appointed mediator for disputes between the business and its creditors, reducing the cost and burden of litigation. Subchapter 5 bankruptcy offers a unique opportunity for small businesses in New Jersey to restructure their debts, renegotiate leases, and avoid liquidation. If your business is struggling with financial hardship, it may be worthwhile to investigate whether you qualify for Subchapter 5 bankruptcy. However, it's important to remember that bankruptcy proceedings can be complex, and it's always wise to consult with an experienced bankruptcy attorney before proceeding. With the right guidance, you can take advantage of the benefits of Subchapter 5 bankruptcy and get your New Jersey business back on its feet.
Filing for bankruptcy can be an overwhelming experience, but it can also provide you with a new financial beginning. In February 2020, the Small Business Reorganization Act (SBRA) was enacted, which introduced a new type of bankruptcy called Subchapter 5 bankruptcy. The SBRA was created to help small businesses and individuals with debts under $2,725,625 to reorganize their debts and keep their businesses alive. In this blog post, we will discuss the benefits of Subchapter 5 bankruptcy, how to file for it, what happens during and after filing, and how Juan C. Velasco, Esq. can assist New Jersey residents with sub chapter 5 bankruptcy matters. Benefits of subchapter 5 bankruptcy One of the advantages of Subchapter 5 bankruptcy is that it allows small businesses to restructure their debts and retain ownership of their company. This kind of bankruptcy is faster, less expensive, and easier than a Chapter 11 bankruptcy. Subchapter 5 bankruptcy also allows debtors to modify their mortgages on investment properties, if the sale or refinance of the property is not feasible. Debtors can also modify their car loans, reducing the amount owed to the fair market value of the car and reducing the interest rate. Filing for subchapter 5 bankruptcy To file for Subchapter 5 bankruptcy, you have to complete specific forms, such as a petition, schedules, and a proposed plan, and submit them with the court. You also have to attend a meeting with the trustee and the creditors and provide the necessary documentation to support your case. If your proposed plan is approved by the court and meets the bankruptcy code's requirements, it will be confirmed, and you will make monthly payments to the trustee for three to five years. After successful completion of the plan, any remaining unsecured debt will be discharged, and you will be debt-free. What happens after filing subchapter 5 bankruptcy After filing, you'll have an automatic stay, a legal injunction that stops most creditors from making collection attempts, and may even stop foreclosure and repossession proceedings on your property. You will also have to attend a hearing to go over the proposed plan with the trustee and the creditors, and possibly modify the plan if needed. During the three- to five-year plan period, you will make monthly payments to the trustee, who will distribute the funds to your creditors. Once the plan period is over, any remaining unsecured debt will be discharged. Juan C. Velasco, Esq. is a trusted bankruptcy and debt relief lawyer who can help you navigate the complex process of Subchapter 5 bankruptcy. He can assist you in preparing necessary documents, attending meetings, and representing you in court. He offers tailored legal solutions that fit your specific situation and can help you eliminate your debt and achieve financial relief. Subchapter 5 bankruptcy can provide a powerful financial solution for small businesses and individuals struggling with debt. It is a faster, less expensive, and more accessible form of bankruptcy than Chapter 11 bankruptcy. Filing for Subchapter 5 bankruptcy can be challenging, but the benefits of doing so can be life-changing. With the help of an experienced bankruptcy lawyer like Juan C. Velasco, Esq., you can navigate the bankruptcy process with confidence and achieve lasting financial relief. If you are a New Jersey resident facing financial difficulties, contact Juan C. Velasco, Esq. to discuss your options for Subchapter 5 bankruptcy.
Starting a small business is an exciting and challenging journey. It requires careful planning, hard work, and a lot of determination to make it successful. One aspect of running a business that can be intimidating for owners is dealing with legal requirements. In New Jersey, there are various legalities that small business owners should be aware of to avoid legal problems and protect their companies. In this blog, we will provide essential legal tips that every small business owner in New Jersey should know. 1. Choose the Right Legal Structure for Your Business: One of the primary decisions small business owners in New Jersey need to make relates to the legal structure of their company. Selecting the right structure can mean the difference between success and failure. The most common forms of business structures in New Jersey are Sole Proprietorship, Partnership, Limited Liability Company (LLC), and Corporation. Each structure has its pros and cons and varying legal formalities that should be considered. 2. Register Your Business: In New Jersey, all businesses must register with the New Jersey Division of Revenue and Enterprise Services. Registering your business is a critical step in complying with the State's legal requirements, obtaining tax identification numbers, and opening a business bank account. 3. Obtain Licenses and Permits: Depending on the type of business you operate, you may need to obtain licenses and permits from the local or state government. In New Jersey, certain businesses require permits for operating in specific industries. Failure to obtain these licenses and permits can result in penalties, fines, and legal problems. 4. Protect Your Business with Contracts: Contracts play an essential role in protecting your business interests. They define the terms of service, payment, and the expectations of both parties. Every business deal should be backed by a written contract, even with trusted customers or partners. 5. Consult an Attorney: Small business owners in New Jersey must ask for legal guidance from an experienced business attorney. An attorney can help you establish legal best practices and avoid legal issues in the future. If you are involved in legal disputes, an attorney can help you navigate through the complexities of the legal system. Starting a small business in New Jersey is an incredible accomplishment. However, small business owners must be aware of the legal implications of running a business. By following the essential legal tips highlighted in this blog, you can protect your business and avoid legal trouble. Remember to choose the right legal structure, register your business, obtain licenses and permits, protect your business with contracts, and consult with a business attorney. With these legal tips, you are on your way to running a successful business in New Jersey.
What Happens if You Die Without a Will in New Jersey?
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