Power of Attorney

Have you ever thought about who you would trust to make medical and financial decisions for you if you were unable to do so for yourself? Unfortunately, many do not think of this until they have to, and when it's already too late. Circumstances can change instantly due to severe illness, a devastating accident, and with advancing age. While this sounds scary, it's worse if one of these situations strikes and you haven't legally named someone your power of attorney. A power of attorney is an invaluable legal document that grants a person of your choosing the right to make these important decisions for you in the event that you can no longer make them yourself. Without one, a complete stranger may be left the decision-maker in charge of your estate, bank accounts, and even your life-altering medical decisions. You don’t have to lose all decision-making powers, even if you become incapacitated. Discover how designating a power of attorney can help you ensure that your needs are legally fulfilled.

A power of attorney is a legal document that gives another person the legal power to make decisions on your behalf. You choose the person you want to represent you and what responsibilities they will have managing your financial, legal, and/or medical needs. Once someone agrees to be your POA and you draw up the necessary legal documents, this person is now considered your “agent” or “attorney in fact”. You can choose to have their decision-making powers take effect immediately, known as durable POA, or you can choose to have them take effect only if you become unable to make these decisions on your own, known as springing POA. Most people don’t need a POA for everyday decision-making, but it is a good idea to have one in place to prepare for the unthinkable. This could save your family and loved ones from jumping through legal hoops in your time of need. Some of the decisions a power of attorney may be in charge of include:

• Real estate transactions
• Personal property
• Banking
• Retirement plans
• Insurance policies
• Medical decisions

There are 4 types of powers of attorneys. Each has its own different set of responsibilities. It is important to know which type of POA your state allows and which one meets your specific needs. A financial professional can help you determine what type of power attorney you need.

General Power of Attorney

This is an individual that is given the power to handle all or many of your financial and legal needs, such as managing real estate property, business transactions, bank accounts, or signing documents on your behalf. A general power of attorney may be terminated if you lose mental capacity.

Durable Power of Attorney

Much like the general power of attorney, this individual is given the power to handle legal and financial needs on your behalf, but a durable POA does not lose their decision-making power if your become incapacitated. Their power remains in effect until death, protecting your family from having to get the court involved if you have a sudden medical crisis or severe cognitive decline.

Medical Power of Attorney

A medical power of attorney is an individual chosen to handle medical needs and decisions on your behalf if you become incapacitated. Their power remains in effect until death. If you have a will written, your medical POA must follow what is written in it.

Specific Power of Attorney

A specific power of attorney is an individual that is chosen for a certain period of time or for a specific transaction. For example, if you have plans to travel during a real estate transaction, you can designate a person to sign documents on your behalf. Their power is terminated after that specific need is completed.

Although there are forms online to complete your power of attorney documents, we highly recommend that you seek help from a probate lawyer or family lawyer when drafting your paperwork. The power of attorney contract is such a powerful document and it is extremely important that your wishes clearly state what powers or limitations your POA will have. No matter the circumstances, it is encouraged to use professional legal counsel to avoid complications.

Attorneys typically charge a flat-rate fee for POA documents. The cost can vary, but most will charge less than $200.00. While you might be able to file these forms online for less, mistakes are common, leaving these documents useless in a court of law. Legal advice from a professional is invaluable when it protects your medical wishes and important assets.

Because this document gives an immense amount of authority to another person, you must be very careful when choosing who you want to use as your power of attorney. The requirements for a POA change frequently as time passes and it's important to review and update as needed. These requirements of this person are as follows.

• This person must be of legal age and mentally competent.
• This person cannot be in the state of bankruptcy
• This person cannot be your medical provider or an employee where you receive medical care

In addition to these requirements, be sure to choose someone that you fully trust. They should be organized, communicative, and have a good understanding of your medical and financial wishes. We highly recommend getting a professional involved to help you choose. In the event that you become incapacitated without an appointed power of attorney, your family may have to go to court to try to establish guardianship or conservatorship.

Not having a power of attorney is a serious risk. In the event of an accident or serious illness that leaves you incapacitated, all of your important decisions could be left to a state-appointed stranger. You could potentially lose your home, assets, and have no control over your medical preferences. Please do not delay making this crucial decision. Professional help is available now. Reach out today and protect yourself, your family, and your most valuable assets.