Power Of Attorney
Why do I need a power of attorney?
The biggest reason to have a power of attorney is to avoid the need for a court-ordered guardianship. A court-ordered guardianship occurs in the event that you suddenly become incapacitated due to an accident or illness. Guardianships can be difficult to work, time consuming and expensive for everyone involved. So having a power of attorney created while also having a will created makes sense.
What is a power of attorney?
A power of attorney authorizes someone you trust completely to act as your agent in making financial decisions for you. This is usually done in the event you are not able to do so yourself. (for medical decisions see Medical Power of Attorney) A power of attorney typically becomes effective the day that you sign it. And it remains in effect until your death unless you revoke it before then (see further below). If you want it to expire on a specific date you can include an expiration date in the document. However, do not do this if you want your agent to be able to make financial decisions for you if you were to become disabled or incapacitated some unforeseeable time in the future. Likewise, you could create a “springing” power of attorney that becomes effective only after you become disabled or incapacitated.
Do I need to notarize a power of attorney and file it at the courthouse?
You need to notarize it for it to be valid, but you do not need witnesses to sign it. You must record it at the courthouse only if you want the agent to act on your behalf in a real estate transaction. However, even if there is no need for your agent to have this particular power when it comes to real estate, it is still a good idea to record the document at the courthouse. Because a recorded power of attorney may hold more authority in the eyes of some financial institutions.
Other than for estate planning purposes, are there other reasons for creating a power of attorney?
Some people use powers of attorney strictly for the sake of convenience. For example, you might want someone to perform banking transactions for you while you are away on a long trip.
Can I create a Power of Attorney that only pertains to particular kinds of financial decisions for me?
A power of attorney can identify and limit the authority of the person designated to act on your behalf. When these powers are limited to certain actions the document is sometimes called a special power of attorney. Some examples of specific powers to grant are for real property transactions, business operating transactions, personal and family maintenance, social security benefits, and tax matters. You can likewise include special instructions limiting or extending the powers you grant to your agent. For example, someone could limit the agent’s powers to only being able to make decisions about a particular personal bank account. Or maybe the agent should only make decisions about a particular business.
How can I revoke a power of attorney?
If you decide you want to terminate the document, you must specifically revoke that power via another document called revocation of power of attorney.
What is the difference between a power of attorney and medical power of attorney?
A power of attorney authorizes someone you trust to act as your agent in making financial decisions for you in the event you are not able to do so yourself. A medical power of attorney authorizes someone you trust to make medical decisions for you in the event you were to become ill and could not communicate with your doctor.
POWER OF ATTORNEY ARTICLES
What Can An Estate Planning Attorney Do For You?
An estate planning attorney can do many things for you. He or she can of course create a will for you. A will is usually the most important part of someone’s estate plan. This document allows you to direct where all of your probate assets should go upon your passing....
The Major Differences Between A Power Of Attorney And A Will
The major differences between a power of attorney and a will are often not understood by my clients when they first contact me. Both are very important documents when it comes to estate planning. In many ways they are the most important documents of someone’s estate...
Making End-of-Life Discussions as Painless and Productive as Possible
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What Can I Do If I Think I Am Likely To Become Incapacitated?
If you think that you are likely to become incapacitated for whatever reason, you should strongly consider signing an estate planning document called a Declaration of Guardian. [You likewise might consider getting a Living Trust] And by incapacitated, I mean that due...
What Is Estate Planning?
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Should I Get Power Of Attorney For A Parent?
“Should I get power of attorney for a parent?” If someone doesn’t already have power of attorney for your parent, then yes, you really should try to get one. And if you don’t think you should be the one to get power of attorney for your parent for whatever reason,...
Choosing An Agent For Your Power Of Attorney
Choosing an agent for your power of attorney is one of the most important decisions for you to make when it comes to creating a solid estate plan for yourself. A power of attorney, also known as a durable power of attorney, authorizes someone to act as your agent in...
High School Graduates Need Estate Planning Too
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Getting An Emergency Power Of Attorney
The best time for getting an emergency power of attorney is usually before the emergency actually happens. And oftentimes it is the only time you can get one. I was once contacted by a woman whose father was in pretty bad physical condition and had been for quite some...
Your Estate Planning Documents During A Crisis
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What’s The Difference Between A Will And A Power Of Attorney?
What’s the difference between a Will and a Power of Attorney is yet another question that I often get from people who contact me. People often confuse what each document can and cannot do for them, so I will now talk about some of the major differences. As I mentioned...
Can My Power Of Attorney Take Care Of My Assets When I Die?
“Can my Power of Attorney take care of my assets when I die?” I get this question fairly often. And even more often than that, as I am talking to people about their estate plans I learn that many of them incorrectly assume that their Power of Attorney will still work...
Power Of Attorney Co-Agents – Are They A Good Idea?
Oftentimes people want to name two of their children as power of attorney co-agents solely due to the fact that they do not want to hurt one of their children’s feelings. They are afraid that if they name one of their kids as the sole first choice as their agent and...
Do I Need To File A Power Of Attorney In Texas?
Do I Need To File A Power Of Attorney? A power of attorney, also known as a durable power of attorney, gives someone you trust completely the authority to act as your agent in making financial decisions for you in the event you are not able to do so yourself. For...
Why Do I Need A Power Of Attorney For My Estate Plan?
Why do I need a power of attorney? A power of attorney, sometimes called a durable power of attorney, is a very important part of an estate plan. It's is a legal document that gives someone you fully trust the legal authority to act on your behalf in making financial...