Choose wisely. There is only one correct answer to each question.
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1.
Because your retirement account is one of your more substantial assets, it is generally unwise to allow your agent authority to make decisions regarding it.
False. Precisely because managing retirement accounts is so important, it's a good idea to grant authority over them to a trusted agent.
2.
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 POA becomes invalid at death and is not a substitute for a will.
3.
Because of its importance and complexity, an advance medical directive is a document that is generally best left to be prepared by an attorney.
False. Most states have sample forms provided by law that can be obtained online.
4.
Which of the following is an important power to grant your agent in your power of attorney?
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.
5.
A springing power of attorney takes effect immediately upon signing.
False. A springing power of attorney "springs" into effect only when you become disabled.