Understanding Power of Attorney: A Key Part of Planning

Planning for the unexpected is an important part of life. Establishing a Power of Attorney (POA) ensures that someone you trust can step in to make decisions on your behalf if needed. Here’s an overview of what a POA is and why it’s essential for every adult.

What Is a Power of Attorney (POA)?

A Power of Attorney is a legal document that grants someone (referred to as your “agent” or “attorney-in-fact”) the authority to make decisions on your behalf. This can include financial, legal, or medical matters, depending on the type and terms of the Power of Attorney you establish.

When Does a Power Of Attorney Take Effect?

You can specify when your Power Of Attorney begins:

  • Immediately: The agent’s authority starts as soon as the document is signed.
  • Upon Incapacity: The Power Of Attorney activates only if you become unable to make decisions.  This will require documentation from your medical provider, this can delay when your agent is able to begin assisting you.
  • Oversight Option: You can require your agent to provide reports to another person to ensure your instructions are being followed.

General vs. Specific Powers

  • Specific Power Of Attorney: Designed for a particular task, such as selling property or managing a single financial issue.
  • General Durable Power Of Attorney: The most common Power Of Attorney used in estate planning, this type allows your agent to handle a wide range of financial and personal matters, even if you become incapacitated.

Choosing the Right Agent

Selecting the right agent is a significant decision. This person will have the authority to make critical decisions on your behalf. Consider:

  • Someone who will act in good faith and with your best interests in mind.
  • A person you trust completely, such as a spouse, adult child, close relative, or trusted friend.
  • Their ability to manage responsibilities and handle potentially complex matters.

Who Should Have a Power Of Attorney?

Everyone.

  • Once you turn 18, it is wise to have both a financial and medical POAs in place.
  • Unexpected events—such as illness or injury—can arise at any time, making it essential to have a plan that ensures your affairs are managed by someone you trust.
  • A POA protects your interests and reduces stress for your loved ones during challenging times.  A good Power of Attorney can avoid loved ones going to court requesting a guardianship or conservatorship over you or disagreements about medical care.

Establishing a Power of Attorney is a proactive step toward safeguarding your future and maintaining family harmony. If you’re ready to discuss your options, we’re here to help. Contact us today to take the next step in your planning.

Allow the Estate Planning Lawyers at Bloom Legal Advisors to prepare this important document for you. Your loved ones are at a great disadvantage and unable to assist you without it. Now is a great time to review your Estate Plan for all key documents. We can assist you with this during your Empowering Estate Education Discussion.

Power of Attorney Frequently Asked Questions – FAQ

 A Power of Attorney is a legal document that allows you to give someone you trust the authority to make decisions on your behalf. This can include financial, legal, or medical decisions depending on the type of POA you create.

 The agent (also called an attorney-in-fact) is the person you choose to make decisions for you if needed. This should be someone you trust to act in your best interests.

 A Power of Attorney can begin in different ways depending on how it is written:
  • Immediately: The agent can act as soon as the document is signed.
  • Upon incapacity: The agent can act only if you become unable to make decisions, which usually requires documentation from a medical provider.

Specific Power of Attorney: Allows your agent to handle a single task, such as selling property or managing a particular financial matter.   General Durable Power of Attorney: Allows your agent to manage a wide range of financial and personal matters, even if you become incapacitated.

 Yes. You can require your agent to provide updates or reports to another person to ensure your wishes are being followed.

 Choose someone who:
  • You trust completely
  • Will act in your best interests
  • Is responsible and capable of handling important decisions 
Many people choose a spouse, adult child, close family member, or trusted friend.

 Every adult should have a Power of Attorney. Once you turn 18, it is wise to have both financial and medical POAs in place in case of unexpected illness or injury.

 Without a Power of Attorney, your loved ones may need to go to court to request guardianship or conservatorship to help manage your affairs. A POA helps avoid that process and allows someone you trust to step in when needed.

 An estate planning attorney can prepare a Power of Attorney tailored to your needs. The estate planning lawyers at Bloom Legal Advisors can help you create this important document and review your overall estate plan.

Contact us today to explore your legal options and start your journey toward financial freedom with trusted Kansas City bankruptcy lawyers by your side.