This is why having the help of an attorney can simplify the process of nominating an agent to have power of attorney. To make your POA legally binding, sign and execute your document according to the laws of your state. This usually involves signing in front of witnesses or having it notarized. Consider giving a copy to your agent or letting your agent know where they can find a copy if needed.
An attorney-in-fact is a person you've assigned to manage your affairs through the power of attorney document. This person is an agent acting on your behalf, also called a fiduciary.
An attorney-in-fact does not need to be someone who can practice law. That said, getting the help of a lawyer to help you draft the POA and navigate estate planning can make the process less stressful for you and your loved ones.
While it's not necessary to involve a lawyer, you must choose an agent who is:. When designating your attorney-in-fact, it's important to find someone whom you know and trust. This person will act on your behalf to make crucial decisions about your well-being, your finances, your assets, or other affairs.
Your attorney-in-fact can be anyone you choose, so picking someone who will act in your best interest can bring you added peace of mind. Several types of POA exist, and each serves a different purpose. It might be important to you that the same person is responsible for all of your affairs, or you might want the person handling your finances to be different from the person handling your health care decisions.
The differences also extend to when you want the POA to take effect. Here are some of the options and more information on them in the next section :. Each type of POA has its own benefits, so it's important to understand all of your options before making a decision. If you're incapacitated because of an illness or a sudden accident, a durable power of attorney document allows your attorney-in-fact to continue acting in your interest.
This is simply a POA that has a durability provision to keep the current power of attorney in effect. You can specify in your POA document whether you would like your agent to have authority once the document is signed or once a doctor declares you incompetent.
You can also specify your preference for which doctor should have that authority to ensure they're a medical professional whose opinion you trust. A springing POA activates as soon as you're declared mentally incompetent or physically incapacitated. A springing POA is different from an immediately effective POA, which, as the title suggests, becomes effective as soon as you sign it. One major drawback of a springing POA is the clarity around a declaration of physical or mental unfitness.
For example, if you're diagnosed with onset dementia and your ability to make sound decisions is thrown into question, it may be difficult to obtain proof that you're medically incompetent. General POA is an effective tool if you will be out of the country and need someone to handle certain matters, or when you are physically or mentally incapable of managing your affairs.
A general POA is often included in an estate plan to make sure someone can handle financial matters. Also known as a special power of attorney, this POA document limits the agent to a set number of conditions.
You can specify exactly what powers an agent may exercise by signing a special power of attorney. You might use this POA if you can't handle certain affairs due to other commitments or health reasons. Selling property personal and real , managing real estate, collecting debts, and handling business transactions are some of the common matters specified in a special POA document.
There are other, more specific types of POA that can expand or restrict an agent's decision-making powers. The type of POA you need is a personal decision that you may want to bring up when you talk about estate planning with your family. Planning ahead for end-of-life decisions allows you to spend more time focusing on the people and activities that you love.
A medical power of attorney also called a durable healthcare power of attorney, grants your agent authority to make medical decisions for you. Your agent will have this power if you are unconscious, mentally incompetent, or otherwise unable to make decisions on your own. While not the same thing as a living will , many states allow you to include your preference about being kept on life support in a medical POA.
Some states will allow you to combine parts of the health care POA and living will into an advanced health care directive. This POA gives a fiduciary the ability to conduct your financial matters when you're not present.
This can be a non-durable POA that covers situations where you're unable to be present, such as an extended time spent abroad.
A power of attorney is a legal document that allows an individual to appoint another person or entity to act on their behalf to administer their affairs. The person who forms the power of attorney is known as the principal and the person granted the authority over the affairs is the attorney-in-fact.
A power of attorney is in effect only as long as the principal is alive and it can only be enacted by a principal who is mentally competent. You may think that once they have appointed a durable power of attorney you lose control of any decision making and how your assets are used. This is simply not true and the power of attorney only steps in if you are no longer mentally capable of running your personal, legal, and financial affairs.
A power of attorney form can be used to nominate a power of attorney to represent an individual and their affairs in several different areas should they become incapacitated. Medical decisions for the principal can take place when the person has become unable to make those decisions for themselves due to incapacitation.
Or you could authorize someone to sign documents to transfer the title to a motor vehicle. A health care power of attorney gives your agent the authority to make medical treatment decisions for you in the event you are unable to do so. This can be because you are mentally incapable of making an informed decision, or are unable to communicate a decision.
For example, you may be temporarily unconscious due to a motor vehicle accident, and your agent must weigh the benefits and risks between immediate surgery and trying medication first.
In the event you regain the ability to make and communicate an informed decision, you also regain the ability to make the decision. So, do you need a health care power of attorney? It is a good idea to have a health care power of attorney as part of your estate plan. In the event you become incapacitated and do not have a health care agent, it may be necessary for a loved one to petition a court to appoint a guardian, which is an expensive, time-consuming, and emotional process.
Some states permit a child care power of attorney, which authorizes your agent to make decisions regarding the care of your child. This is typically done when a child will be temporarily living with relatives or others in a location some distance from the parents.
Such a power of attorney may cover things such as enrolling the child in school, consenting to field trips, and even making emergency medical treatment decisions in the event a parent cannot be reached quickly.
Provided you have a person you can trust, you should have a power of attorney for both finances and health care. Special circumstances may also indicate a limited power of attorney is needed. Contents 5 min read. Edward A. Haman is a freelance writer, who is the author of numerous self-help legal books. He has practiced law in Hawa… Read more. Family Law Basics. When you sign as someone's power of attorney, you must note that you are legally signing on their behalf.
Estate Planning Basics. Because a power of attorney is one of the most important legal documents you can have, it's important to know whether you want a durable or regular power of attorney. Power of attorney is essential in the event that you're incapacitated or not physically present to make decisions on your own behalf. Wow, this is worth reading. Thank you for sharing this article.
It is very informative, great work. It may prove helpful but not if you are being pressurised by someone to sign one. Only have people you trust completely as your attornies.
WE have a potentially upcoming problem. My elder sister was hospitalised following a fall at her home. She was then moved into a care home for an initial period of one month tr help her recovery before going home.
We have not been able to get in the home to visit with her. Adult Social Services have agreed that my sister should be allowed to go home on the 23rd June with an associated care plan. Before she was sent to the care home she was previously assessed in hospital by ASS who concluded that she was indeed fit enough to go home with the associated care plan.
Should we be wary of the ASS attempting to prevent our sister going home? Can a nursing home confiscate bank accounts and homes if another person is listed jointly on an account or the property is in another person name? Why would a solicitor need power of attorney if my father has passed and he has a will. I have been told it is due to the land registration. My father own the house , in his will he has stated that the house etc is to split equally between myself and my 2 sisters.
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