I. Introduction
With life’s many uncertainties, it’s best to start thinking about the future today. One of the most crucial decisions you can make is to create a power of attorney. This legal document grants someone of your choice the authority to handle your affairs in case you become incapacitated or unable to handle your own affairs. In this article, we provide a comprehensive guide on how to get a power of attorney and help you understand everything you need to know about this essential document.
II. Definition of a Power of Attorney
A power of attorney is a legal document that grants someone (called the “attorney-in-fact” or “agent”) the authority to act on your behalf for a specific period, task or duration. The person granting this power is referred to as the “principal.” The agent is given certain rights to make decisions for the principal and handle specific tasks, such as managing finances, making medical decisions and signing legal documents.
There are different types of power of attorney, and before you create one, it is important to understand the legal implications of each type and which one is suitable for your specific needs.
Examples of situations when a power of attorney might be necessary include when someone needs to manage your finances while you are traveling abroad, when you become mentally incapacitated or when you are no longer able to make your healthcare decisions.
III. Different Types of Power of Attorney
There are three main types of power of attorney, which are:
- General Power of Attorney: This type gives broad legal authority to your agent and applies to most legal situations. It is valid only while you are competent and can be revoked at any time.
- Durable Power of Attorney: A durable power of attorney is generally used for long-term arrangements, such as in the case of a deteriorating health condition. It remains in effect even if you become mentally incapacitated and can no longer make decisions for yourself, hence the name “durable.”
- Limited Power of Attorney: This type gives your agent authority for a specific event or for a limited period, such as selling your property, handling business or financial transactions.
The right type of power of attorney for you depends on your specific needs and circumstances. For instance, a general power of attorney would be suitable if you need someone to handle your legal and financial affairs while you are temporarily out of the country. On the other hand, a durable power of attorney might be more appropriate if you have a medical condition and need someone to make healthcare decisions for you.
IV. How to Draft and Execute a Power of Attorney
Once you have decided which type of power of attorney fits your needs, it is important to know how to draft and execute one. Here are the steps you will need to follow:
- Choose an agent: Select an agent or attorney-in-fact who will be responsible for carrying out the legal tasks and making decisions on your behalf. Ensure they are trustworthy and willing to take on the responsibility.
- Draft the document: Define the type of power of attorney and the limits or scope of the agent’s authority. Make sure that the document is clear and concise.
- Sign the document: This must be done in the presence of a notary public or an attorney (depending on the state laws) to make it legally binding. The agent will also need to sign it to certify their acceptance of the role.
Once the document is signed and executed, it’s important to keep copies in a safe and easily accessible place, such as with an attorney or in a safe deposit box. It is essential to make sure your agent or attorney-in-fact also has a copy.
V. Selecting an Agent or Attorney-in-Fact
Choosing someone to act on your behalf requires serious consideration and is an important decision for any principal.
Some factors to consider when selecting an agent or attorney-in-fact include:
- Trustworthiness: You should appoint someone who you trust to make decisions on your behalf.
- Availability: You want someone who will be available whenever you need them.
- Proximity: It would be best if you appointed someone who is in close proximity to you, so they can manage your affairs effectively.
It is also a good idea to discuss your decision with the person whom you have elected to take on the role, to ensure that they understand their responsibilities and are willing to accept the responsibility of becoming your agent.
VI. Updating or Revoking a Power of Attorney
Once you have granted a power of attorney, if circumstances change, you can always update or revoke the document.
To update the power of attorney, all you need to do is create a new one and sign it in the same way as the original document. To revoke the power of attorney, you will need to draft a revocation document and sign it in front of a notary or attorney. Make sure that all interested parties have copies of the revocation so that no one can claim ignorance.
VII. Potential Pitfalls to Avoid
While a power of attorney can be a beneficial and essential document, there are potential scams or fraudulent uses by dishonest agents. It is important to be cautious and aware of warning signs of scams and pitfalls to avoid.
One significant warning sign is an unexpected request from the agent to transfer a substantial amount or to change the title of property. If you suspect that the agent is acting fraudulently or in bad faith, you can seek the advice of an attorney or contact your local State Attorney General for guidance.
VIII. Storing Important Power of Attorney Documents
Once you have executed a power of attorney, you must ensure that it is kept safe and secure. Store important documents in a well-known place, such as a safe deposit box or with your attorney. Consider providing your agent with a copy or a copy of the original document. It is also important to review your power of attorney regularly to ensure that it still meets your needs. If necessary, make any necessary changes or updates and ensure that the new document is signed and executed in the same way as the original document.
IX. Frequently Asked Questions and Additional Resources
Here are some common questions that people ask when creating a power of attorney:
- Can I have more than one power of attorney?
- When does the power of attorney become effective?
- Can I select two agents, or do I have to choose just one?
- How do I choose an attorney?
There are also many resources available to help you create a power of attorney. Speak to your attorney, your local Senior Center, or check online for additional information.
X. Conclusion
Creating a power of attorney is an essential step in planning for the future. It grants your agent or attorney-in-fact the legal authority to make decisions on your behalf when you are no longer able to do so. By following the steps laid out in this comprehensive guide, you can create a power of attorney that meets your specific needs and ensures your affairs will be properly managed.
If you have not yet created a power of attorney, it is essential to take the necessary steps to do so as soon as possible. Doing so will give you peace of mind knowing that your affairs are in good hands if something unexpected happens.
