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Understanding Power of Attorney
Estate
planning is more than determining who will get your money and property
after you die. Estate planning also means deciding who will manage your
financial and legal affairs if you ever become incapacitated. A
Power of Attorney is a legal document in which you give another person
legal authority to act for you if you are unable to do so yourself. The
person who acts on your behalf is your “agent.” Your agent does not
have to be an attorney, but should be someone you trust. It
is a misconception that that your agent will "take over" or that you
will not be able to make your own decisions. You should think of a
Power of Attorney as giving your agent a second set of keys. You will
still have your own keys, and at any time, you can take your agent's
keys back by revoking the Power of Attorney. Types of Power of Attorney Some
POAs are limited in scope. For example, a Limited Power of Attorney
could authorize your agent to write checks from your bank account or
access your safe deposit box. A General Power of Attorney, on the other
hand, gives your agent the broad power to manage your property and pay
your bills. It may even allow your agent to sell your property, to make
gifts or to transfer your property to a Living Trust, if these powers
are specified in the Power of Attorney. POAs
that continue to be effective during periods of disability are commonly
referred to as “Durable Powers of Attorney.” In a Durable Power of
Attorney, you may require that your doctor be the one to determine if
the disability exists. At that point, your agent will step in to take
over your finances. Limited Power of Attorney Through
a limited Power of Attorney you authorize your agent to do specific
things for you for a limited period of time or in certain
circumstances. The limited Power of Attorney ends if you become
incapacitated or die. It also may end at a time that you specify in the
document. General Power of Attorney A
general Power of Attorney gives your agent the authority to do whatever
you can do. Think very carefully before signing this type of document.
It should be used sparingly. This document ends when you become
incapacitated or die. Durable Power of Attorney A
durable Power of Attorney authorizes your agent to continue to act for
you after you become incapacitated. This document ends at your death.
It can take effect as soon as you sign it. Durable Financial Power of Attorney A
durable Financial Power of Attorney allows your agent to carry out
financial tasks for you when you cannot do so. This might include
paying your bills, managing your property, and handling other money
matters. Springing Power of Attorney A
Springing Power of Attorney only goes into effect if you have been
declared mentally incompetent either by a court or one or more
physicians. A springing Power of Attorney can be written so it goes
into effect when certain events occurs (e.g., if you become mentally
incapacitated or cannot communicate). Be very careful to define clearly
exactly how others will determine that the "springing event" has
occurred. The
main disadvantage of a Springing Power of Attorney is that it will
delay your agent's ability to act on your behalf until after the proper
documents have been signed that declare you mentally incompetent. Healthcare Power of Attorney and Living Wills A
Healthcare Power of Attorney and Living Will let you dictate
instructions for the type of health care you want to receive, including
who should oversee your treatment, if you are unable to communicate
these instructions yourself. Healthcare Power of Attorney A
Healthcare Power of Attorney allows your agent to make health care
decisions for you if you are unable to communicate your wishes
regarding medical treatment. Living Will A
Living Will serves to inform medical personnel and your healthcare
agent about your wishes regarding life-support or other medical
treatment in certain circumstances, usually when death is imminent. |
You’re invited to call or
e-mail. "If you have questions about estate planning, asset protection, assisted reproduction or surrogacy, please send your e-mail today to nicole @ kinseylawgroup.com or call (301) 968-1630." — Nicole
Phone: (301) 968-1630 * Phone: (202) 643-1837 * Fax: (888) 559-8856
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