Estate planning is an essential part of securing your future and ensuring that your financial and healthcare decisions are managed if you’re unable to do so yourself. A Power of Attorney (POA) or Durable Power of Attorney (DPA) allows a trusted individual to handle important matters on your behalf. However, there’s one crucial step that’s often overlooked and can cause major delays when the POA comes into effect—obtaining a doctor’s letter confirming your mental competency at the time the documents are signed.

This requirement is not only important but necessary in many financial transactions. For example, lenders processing a reverse mortgage or other significant financial activities often ask for proof that the individual was mentally competent when they signed their POA. Without this, it can lead to complications and delays during what is often a critical moment.

Imagine needing a reverse mortgage to cover home healthcare costs, only to be told that the POA cannot be used until proof of competency at the time of signing is provided. Going back to obtain this proof years after the fact can be difficult, and in some cases, even impossible, especially if the physician who originally treated you is no longer available. The delays caused by trying to meet this requirement can be stressful and frustrating.

To avoid these potential headaches, it’s a best practice to get a doctor’s letter confirming mental competency at the same time you draft your POA or estate documents. This proactive step ensures that your POA can be implemented smoothly when it’s needed most, without unnecessary delays.

While I’m not an attorney, I’ve seen this situation arise multiple times, particularly when people are trying to secure reverse mortgages or manage other financial affairs. Talking to your estate planning attorney about including a doctor’s letter in your documentation can save you a lot of trouble down the road. They can help guide you through the process and make sure that everything is in place to avoid legal snags when the POA is put into effect.

It’s never too early to think ahead. Protect your future, your loved ones, and your peace of mind by making sure your estate plans are solid and legally sound.

If you’re considering a reverse mortgage or want to ensure your estate planning is airtight, reach out to me. I can connect you with an estate planning attorney who can make sure you’re ready for whatever comes next. Call me at 925-807-1503 or visit https://www.signetmortgage.com to learn more.