Power of Attorney
A power of attorney is a legal document you can use to appoint someone to make financial and legal decisions for you. The person you appoint is called an attorney.
Overview
One of the most important legal decisions you can make is choosing someone to act as your attorney under a Power of Attorney. In this context, the term “attorney” does not necessarily mean a lawyer. It refers to the person you appoint to make financial and legal decisions on your behalf if you are unable to do so yourself.
Most people choose a trusted family member, close friend, spouse, or adult child to serve as their attorney. Others may prefer to appoint a professional, such as a lawyer, accountant, or trust company. Regardless of who you choose, it is essential that the person is trustworthy, responsible, organized, and willing to act in your best interests. A Power of Attorney grants significant authority over your financial affairs, so careful consideration should be given to this decision.
There are different types of Powers of Attorney, and it is important to understand the distinction.
A General Power of Attorney allows someone to manage your financial and legal affairs on your behalf but automatically ends if you become mentally incapable or upon your death. This type of Power of Attorney is often used for temporary situations, such as extended travel, illness, or convenience.
An Enduring Power of Attorney continues, or “endures,” even if you become mentally incapable of making decisions for yourself. This type of document is commonly used as part of estate and incapacity planning because it ensures that someone you trust can continue managing your finances, paying bills, handling investments, dealing with property matters, and making important financial decisions if you are no longer able to do so.
What Do Lawyers Provide?
During the process of creating and managing a Power of Attorney (POA), lawyers provide several key services, including:
Drafting the Document: Lawyers help draft the POA document to ensure it meets legal requirements and accurately reflects your wishes. They tailor the document to specify the powers you grant and any limitations or conditions.
Explaining Options: They explain the different types of POAs—such as general, durable, or limited—and help you choose the one that best suits your needs.
Advising on Legal Implications: Lawyers provide guidance on the legal implications of granting power of attorney, including the potential consequences for both you and the person you appoint.
Ensuring Compliance: They ensure that the POA complies with state or national laws and that it is properly executed, including witnessing or notarizing the document if required.
Providing Guidance on Choosing an Agent: Lawyers offer advice on selecting a trustworthy and competent agent who will act in your best interest.
Updating and Revoking: They assist with updating or revoking the POA if your circumstances or wishes change, ensuring that your legal documents remain current and effective.
Addressing Disputes: If disputes arise regarding the execution or interpretation of the POA, lawyers can provide legal support and representation.
By leveraging their expertise, lawyers help ensure that your POA is legally sound and aligns with your personal and financial goals.
Do you need a POA?
It is advisable to use a lawyer who specializes in this area of law because it’s complex.
Beside this, you’ll find links to resources that can help you determine if you need a Power of Attorney, along with additional information to assist you in taking this next step.