Power Of Attorney

Many people assume that if something should happen to a loved one that their spouse or parent will automatically have the legal right to make healthcare or financial decisions. No one has automatic legal authority to make medical or financial decisions for you. The legal and correct thing to do is to have a Durable Power of Attorney and Advanced Healthcare Directive signed and notarized.

What is a power of attorney?

A power of attorney (POA) is a legal document allowing someone you trust to act on behalf of you.

Who Can Be a Power of Attorney?

Any competent adult can act as an agent (POA), including spouses, family members, or trusted friends. They should be trustworthy, as they will have significant access to your assets and decisions.

Types of Power of Attorney

• Durable POA: Stays in effect if you become incapacitated. Can make financial decisions on your behalf.
• Healthcare Directive-POA: Allows your agent to make medical decisions for you, if you are unable to.
• General POA: Authorizes various acts, such as banking and contracts, but ends upon incapacitation.
• Limited/Special POA: Restricted to specific tasks, such as selling a specific home, usually temporary.
• Springing Effect POA: If you choose to have someone assist you with finances and/or medical decisions when you still have capacity but want to appoint an agent to handle decisions for you immediately.
• Medical POA: Appoints someone to make healthcare decisions.

Responsibilities of an Agent

An agent must act in the principal’s best interest, known as fiduciary duty. Their responsibilities include:

• Managing bank accounts and other assets properly.
• Keeping a record of the accounting of all transactions properly.
• No comingling of the funds.
• Following the instructions outlined in the document.
• Acting in accordance with the best interest of the principal’s wishes.

Legal Requirements

• Sound Mind: The principal must be mentally capable at the time of signing.
• Written Document: The document must be written and clearly define the powers granted.
• Signatures: Must be signed by the principal.
• Notarization: Usually required, and often crucial for bank acceptance.

In most circumstances you can generally revoke a power of attorney at any time, provided you are still mentally competent.

IMPORTANT: Give copies to your agent (POA) and financial/medical institutions.