What is a Power of Attorney document?
A Power of Attorney (or “POA”) document grants legal authority for an individual (called the “agent”) to act on behalf of another individual (called the “principal”). These documents are typically used to allow the agent to make financial and medical decisions for the principal, especially if the principal has become mentally incapacitated.
Do I need a Power of Attorney document?
If you want to be sure that someone with your best interests at heart will be making decisions on your behalf should you ever become mentally incapacitated, then the answer is yes. While some causes of mental incapacity can be foreseen (like certain illnesses, or even old age), many cannot. A sudden car accident that results in a brain injury, for example, can render an individual incapable of making simple life decisions, let alone important medical or financial decisions. To protect yourself and your assets in the case of an accident, or any other cause of mental incapacity, it is a good idea to have a POA document.
What types of Power of Attorney are there?
There are several different types of POA. These are some of the more common types:
- General – A general POA gives the agent the authority to act on behalf of the principal, but only while the principal is mentally competent
- Durable – A durable POA gives the agent the authority to act on behalf of the principal, and this authority continues even if the principal becomes mentally incompetent
- Springing – A springing POA gives the agent the authority to act on behalf of the principal, but only when the principal becomes mentally incompetent, or some other specified event or circumstance occurs
- Health Care – A health care POA gives the agent the authority to make medical decisions (and only medical decisions) on behalf of the principal; it can either be durable or springing.
How do I get a Power of Attorney?
- The first step is to determine what type of POA you would like.
- Next, you need to decide whom you would like to be your agent. This should be a person you can trust to always act in your best interest. Often a spouse, sibling, child, or close friend is chosen.
- Then you must fill out the appropriate POA paperwork. For this paperwork to take effect, it must be signed by the agent, the principal, and either two witnesses or be acknowledged before a notary public.
Can I change or terminate a Power of Attorney?
Yes, you can modify or even terminate your Power of Attorney. To do so, you need to fill out a Revocation of Power of Attorney form and you must provide notice of the change or termination to your previous agent.
Who can help me fill out the right Power of Attorney documents?
For more information on Power of Attorney documents or for assistance in Estate Planning, contact David Knecht at davidknechtlaw.com.
