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Answer:
Dear
BuyandHolder,
You
can add money to your mother's BUYandHOLD account
at any time, using your own checking account.
However,
if you wish to sell any of her stocks or add to her
account using her funds, you will need a power
of attorney (POA).
This
is a legal document in which a person, in this case
your mother (also known as the principal), designates
another person to act on his or her behalf. That other
person (you) is known as the attorney-in-fact.
There
are variations on the theme, so you may want to consult
your attorney. For example, a power of attorney may
be very specific, authorizing a person only to handle
the principal's brokerage account, or only to sell
the principal's car, or only the principal's house.
Or,
on the other hand, the power of attorney can be extremely
broad, allowing the attorney-in-fact to do almost
anything for the principal.
Just
so you'll know, power of attorney is not the same
as a health care proxy. That is a separate document.
In
most cases, a simple power of attorney is not valid
if the principal becomes disabled or unable to handle
his or her affairs.
(The
official term is incapacitated.) However, if the principal
draws up a durable power of attorney, that
document specifically states that the power is to
continue on should the principal become disabled or
incapacitated. In fact, a durable power of attorney
generally remains in effect until the principal revokes
it or dies.
Caution:
In some states, a durable power of attorney is ended
if a guardian is appointed for the principal. Again,
this confusing detail should be discussed with a lawyer
who practices in the state where your mother lives.
A
power of attorney becomes effective when it is signed.
However, your mother could arrange it so the power
of attorney becomes effective only if she becomes
incapacitated. This is called a springing power
of attorney. The ability to set up a springing
POA varies from state to state.
I
recommend that you and your mother make plans to go
ahead as soon as possible. That's because powers of
attorney (and other similar documents) must be made
while the principal is still capable.
It's
also a good idea for your mother to name an alternative
to serve, in case something should happen to you or
you are not immediately available - you might be traveling
abroad, for example.
At
BUYandHOLD
When
you have the official document, make several copies
and send the notarized original to:
BUYandHOLD
375 Raritan Center Parkway
Edison, NJ 08837
We
wish your mother all the best!
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