Power of Attorney
A Power of Attorney (POA) is a legal document that grants another person, known as the agent or attorney-in-fact, the authority to make decisions and act on your behalf in various matters. This can include financial, medical, and personal affairs. A POA allows you to designate someone to manage your life when you are unable to do so yourself, either temporarily or permanently.
What is a Power of Attorney?
A Power of Attorney (POA) is a flexible document that can be tailored to suit specific needs. There are different types of POAs, including:
- General Power of Attorney: This type grants broad authority to the agent to manage all aspects of your life.
- Special Power of Attorney: This type is limited to specific tasks or situations, such as selling a property or handling tax matters.
- Durable Power of Attorney: This type remains in effect even if you become incapacitated and are unable to make decisions for yourself.
Types of Powers of Attorney
- General
- Special
- Durable
Key Considerations When Creating a Power of Attorney
Before creating a POA, it's essential to consider the following:
- Choose an trustworthy agent who will act in your best interests.
- Clearly define the scope of authority and specific tasks that can be performed by the agent.
- Establish any conditions or limitations on the agent's powers.
- Consider including a "springing" provision, which allows the POA to take effect only when you become incapacitated.
Common Misconceptions About Power of Attorney
Many people believe that a POA automatically becomes effective if they are diagnosed with a terminal illness or placed in a coma. However, this is not always the case. A POA typically requires specific language and conditions to be met before it can take effect.
How to Create a Power of Attorney
To create a POA:
- Consult with an attorney who specializes in estate planning.
- Choose your agent carefully.
- Review and update your POA as needed to reflect changes in your life or circumstances.