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Which of the following is an important power to grant your agent in your power of attorney?

The power to write your will if you become unable to do so

The power to handle tax matters and deal with the IRS

The broad power to use your accounts for any purpose, in the judgment of your agent

All the above

The power to handle tax matters and deal with the IRS. Your agent is not permitted to write your will, and should not have authority to use your accounts for any purpose that he or she wants.

Which of the following is true regarding advance medical directives?

Controversy can arise if you express wishes as to your medical care with which your surrogate disagrees

It is best to have your advance medical directive witnessed by close family members

Your advance medical directive should address what should be done or not done when death is imminent

Your advance medical directive should address what should be done or not done when death is imminent. The other choices are false.

Which of the following is true regarding your power of attorney?

Its primary purpose in estate planning is to delegate broad authority over personal financial affairs to your agent in case you become disabled or incompetent

A comprehensive POA is an adequate substitute for a will in simple situations

Both of the above

None of the above

Its primary purpose in estate planning is to delegate broad authority over personal financial affairs to your agent in case you become disabled or incompetent. A POA becomes invalid at death and is not a substitute for a will.

A springing power of attorney takes effect immediately upon signing.

True

False

False. A springing power of attorney "springs" into effect only when you become disabled.

Which of the following is true regarding durable powers of attorney?

Specificity in outlining your agent's authority is important

Most states have laws requiring financial institutions to honor properly executed powers of attorney

Both of the above

Neither of the above

Specificity in outlining your agent's authority is important. If that authority is unclear in the durable POA, whomever is asked to honor it could refuse.