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.
