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Makethisthe
best summer
ever!
This summer, take a vacation, buy patio furniture and a new grill, or buy a
new entertainment system and enjoy the in-doors! Set your own pace and
choose the amount or term that fits your financial needs. Don’t miss out!
Hawaii State FCU’s Summer Loan is only available until August 31, 2012.
*Offer good from 06/15/2012 to 8/31/2012. APR is for a one-year term loan and it includes a 0.25% discount for automatic payment. Without automatic payment, the APR will be 0.25 percentage
points higher. Your APR will be based on your creditworthiness. Payment Example: A loan of $1,000 with a 4.00% APR will have 12 monthly P&I payments of $85.18, which includes $21.84 total
interest paid. Offer applies to new HSFCU loans only. Certain terms and conditions apply.
Information on
Estate Planning
This is an installment in a series of articles discussing various tools available to assist you or your loved ones with
managing finances in the event that you are unable to do so or subsequent to your death.
Don’t Miss Out! Ends Aug 31!
Powers of Attorney
There may be times in your life when you want to give another person the ability to make transactions on your accounts on your
behalf. For personal accounts, such ability may be created pursuant to a legal document called a Power of Attorney.
A Power of Attorney creates a principal-agent relationship between the person granting the power (the “principal”) and the person
being appointed (the “attorney-in-fact”). The attorney-in-fact is a fiduciary which means that the attorney-in-fact acts on behalf of
and for the benefit of the principal. The attorney-in-fact cannot use the Power of Attorney for personal benefit.
There are two fundamental types of Powers of Attorney: (1) general and (2) special/limited.
A General Power of Attorney
enables the attorney-in-fact to act on behalf of the principal in any manner that the principal is
able to act on the principal’s own behalf. While most General Powers of Attorney have long lists of actions that the attorney-in-
fact can take on behalf of the principal, a well-drafted General Power of Attorney will state that such acts are examples of the
power being granted and not designed to limit the power to those which are listed.
A Special/Limited Power of Attorney
may provide limited authority to the attorney-in-fact or set a specific time limit as to when
the Power of Attorney continues to be in effect.
Powers of Attorney differ in another important respect: whether the powers granted will be effective when the principal is
incapacitated. If the Power of Attorney specifically states that it will be effective notwithstanding the incapacity of the principal, then
the powers granted, be they general or special, will be effective. This type of Power of Attorney is called “durable” and is authorized
by statute. There are two types of durable Powers of Attorney:
(1) one that is effective upon execution and continues in effect after the subsequent incapacity of the principal and
(2) One that becomes effective only upon the subsequent incapacity of the principal. In no event does a Power of Attorney continue
in effect past the death of the principal.
Should an account owner decide to present a Power of Attorney, it should be noted that it may or may not be honored as there is no
requirement that a Power of Attorney be honored. Before deciding to honor a Power of Attorney, the attorney-in-fact may be required
to execute an affidavit attesting to certain facts and giving certain assurances regarding the Power of Attorney.
Powers of Attorney are frequently part of an overall estate plan so you may want to consult with an attorney specializing in estate
planning. The attorney can help you decide if the Power of Attorney is right for your situation, or if perhaps you should allow a third
party to have access to your account by other means.
Information presented in this article is for informational purposes only. You may want to consult an attorney about your individual situation.