To make your POA legally binding, sign and execute your document according to the laws of your state. This usually involves signing in front of witnesses or having it notarized. Consider giving a copy to your agent or letting your agent know where they can find a copy if needed.
An attorney-in-fact is a person you've assigned to manage your affairs through the power of attorney document. This person is an agent acting on your behalf, also called a fiduciary. An attorney-in-fact does not need to be someone who can practice law. That said, getting the help of a lawyer to help you draft the POA and navigate estate planning can make the process less stressful for you and your loved ones.
While it's not necessary to involve a lawyer, you must choose an agent who is:. When designating your attorney-in-fact, it's important to find someone whom you know and trust. This person will act on your behalf to make crucial decisions about your well-being, your finances, your assets, or other affairs. Your attorney-in-fact can be anyone you choose, so picking someone who will act in your best interest can bring you added peace of mind.
Several types of POA exist, and each serves a different purpose. It might be important to you that the same person is responsible for all of your affairs, or you might want the person handling your finances to be different from the person handling your health care decisions.
The differences also extend to when you want the POA to take effect. Here are some of the options and more information on them in the next section :. Each type of POA has its own benefits, so it's important to understand all of your options before making a decision. If you're incapacitated because of an illness or a sudden accident, a durable power of attorney document allows your attorney-in-fact to continue acting in your interest. This is simply a POA that has a durability provision to keep the current power of attorney in effect.
You can specify in your POA document whether you would like your agent to have authority once the document is signed or once a doctor declares you incompetent. You can also specify your preference for which doctor should have that authority to ensure they're a medical professional whose opinion you trust. A springing POA activates as soon as you're declared mentally incompetent or physically incapacitated. A springing POA is different from an immediately effective POA, which, as the title suggests, becomes effective as soon as you sign it.
One major drawback of a springing POA is the clarity around a declaration of physical or mental unfitness. For example, if you're diagnosed with onset dementia and your ability to make sound decisions is thrown into question, it may be difficult to obtain proof that you're medically incompetent. General POA is an effective tool if you will be out of the country and need someone to handle certain matters, or when you are physically or mentally incapable of managing your affairs. A general POA is often included in an estate plan to make sure someone can handle financial matters.
Also known as a special power of attorney, this POA document limits the agent to a set number of conditions. You can specify exactly what powers an agent may exercise by signing a special power of attorney. You might use this POA if you can't handle certain affairs due to other commitments or health reasons. Selling property personal and real , managing real estate, collecting debts, and handling business transactions are some of the common matters specified in a special POA document.
There are other, more specific types of POA that can expand or restrict an agent's decision-making powers. The type of POA you need is a personal decision that you may want to bring up when you talk about estate planning with your family. Planning ahead for end-of-life decisions allows you to spend more time focusing on the people and activities that you love. A medical power of attorney also called a durable healthcare power of attorney, grants your agent authority to make medical decisions for you.
Your agent will have this power if you are unconscious, mentally incompetent, or otherwise unable to make decisions on your own. While not the same thing as a living will , many states allow you to include your preference about being kept on life support in a medical POA. Some states will allow you to combine parts of the health care POA and living will into an advanced health care directive. This POA gives a fiduciary the ability to conduct your financial matters when you're not present.
This can be a non-durable POA that covers situations where you're unable to be present, such as an extended time spent abroad. It can also be a durable financial POA that covers instances when you're incapacitated or mentally incompetent and therefore can't make sound financial decisions for yourself. Just as with powers of attorney that apply to civilians, military powers of attorney vary in their coverage, and what authority you grant is entirely up to you.
Due to the travel often involved in military roles, having a power of attorney in place for a military spouse can be beneficial for many everyday situations, such as accessing your bank account, registering a car, or filing taxes.
The unpredictability of life during deployment can mean sudden changes in your plans and your ability to make decisions on your own behalf, whether it's through unavailability, injury, or incapacitation. Having a power of attorney in place is a good idea for anyone in the military, but for those who are deployed, it can be critical. Once you determine which power of attorney you'll need, you'll need to decide who your agent will be.
It's important to remember that any attorney-in-fact is responsible for your best interests and must, to the best of their ability, advocate on your behalf. There are a few steps that can simplify the process of delegating a power of attorney. You are able to appoint multiple attorneys-in-fact to represent your interests, and you should decide whether these agents must act jointly or separately in making decisions.
Multiple agents might be beneficial if your medical or financial affairs are complex. But having multiple agents can introduce scheduling conflicts to the process and may delay important decisions. Similarly, only having one agent has limitations. You should appoint a backup agent who can step in if the original agent is suddenly unable to execute their duties. Trust is a key factor when choosing an agent for your power of attorney.
Whether the agent is a friend, relative, organization, or attorney, you need someone who will look out for your best interests, respect your wishes, and won't abuse the powers granted to them. Should you, a friend, or relative suspect wrongdoing on the part of your agent, report the suspected abuse to a law enforcement agency and consult a lawyer. If the durable power of attorney is signed by two witnesses rather than a notary public, the witnesses must be adults and cannot include the attorney-in-fact representing the principal.
A power of attorney form can incorporate any type of transaction that the principal wishes to have administered by the attorney-in-fact. These can include:. Create your power of attorney document using our easy to follow forms below.
Select the best POA for your needs below and get started now. But wait. There is more. There are two kinds of durable powers of attorney: a durable power of attorney for finances lets you name someone to manage your financial affairs if you become incapacitated, and a durable power of attorney for health care allows someone to make medical decisions for you if you are no longer able to speak for yourself.
Preparing these two documents, along with a health care directive -- more commonly known as a living will -- that sets out your wishes for medical care, ensures that your health and financial matters will stay in the hands of trusted people you choose.
You should have your durable power of attorney for finances notarized, and in some cases, witnessed as well. If social distancing makes it difficult for you to finalize your documents, read about your options for witnessing and notarizing documents during the COVID outbreak. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site.
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