Why do you need power of attorney?

Answer 1

You can read all about a Power of Attorney at the link below. The benefits are numerous and much needs to be considered if such a legal action is contemplated. A general or durable POA grants sweeping powers over all your assets to another person. You need to review the information and decide for yourself if one is generally necessary for you.

In some cases a Limited POA is necessary for various specific acts such as:

• when a person is away serving in the military and their spouse is selling their home.
• when a person who lives in another state is buying or selling real estate
• when a person is recovering from a serious medical condition and need to have someone act on their behalf during recovery
• any time a person must sign legal documents and will not be available to do so in person

Answer 2

A POA is NOT necessary to probate or receive an inheritnce. Usually the deceased will have named the Executor in their will and no other requirement is necessary. Some state may require a 'bond' from the Executor but the deceased can waive that requirement if he/she placed such phraseology in their will.

Answer 3

The power of attorney is one of the most versatile estate planning tools available. A power of attorney is a document which the maker (known as the "principal") gives authority to an "attorney-in-fact" to act on the principal's behalf while they are living. The attorney-in-fact doesn't have to be an actual attorney, but can be anyone you choose. If something were to happen to you, the power of attorney vested in the person of your choosing could help from anything ranging from paying bills to making major medical decisions.

If the Power of Attorney is made Durable it will be effective even if you become incapacitated and will give your AIF the power to act for you if you are no longer able to make decisions for yourself.

A principal who has legal capacity must execute a Power of Attorney voluntarily naming an attorney-in-fact. The principal must have the legal capacity to execute the POA. They must understand what they are doing, why they are doing it, understand the effects executing the POA will have and they must not be unduly influenced or pressured by someone else to do it. The principal should discuss it with an attorney who can review their situation, listen to their needs, explain their options and explain the consequences.

A Durable POA is effective even after the principal has become incapacitated due to age or illness. A general POA expires when the principal becomes incapacitated. An attorney-in-fact must be a trustworthy person. They will have complete control over the principal's assets. A POA is a powerful instrument that should always be drafted by an attorney and to fit the needs of the principal. To create a power of attorney a person must:

• Be at least 18 years old;
• Intend to give the power to the person designated in the document; and
• Be mentally competent, which means able to understands the document;
• Understand which powers are being granted; and
• Understand which property is affected by the power granted.

Unless you are absolutely sure about what you're doing and fully informed about the consequences, you should consult an attorney. A POA grants sweeping powers to your attorney-in-fact. They will have complete access to your assets and will need to be capable of keeping good records. They should keep an account of all the money coming in and all the money going out by their hand. They must be trustworthy, organized, intelligent, reliable and act in a professional manner where your finances and property are concerned.

A medical power of attorney will enable your agent to make medical decisions on your behalf if you should become unable to make those decisions for yourself.

Answer 4

It depends on what you have in the trust and what your other assets are. If you need someone that can pay bills for you if you are in the hospital, a power of attorney would be needed. Consult with an attorney for a discussion of what will work in your situation.

Answer 5

No, you do not file your power of attorney form with the court. All you need to do is have the form notarized and show it to the institutions you will be using it.

Answer 6

A power of attorney grants another person the authority to act in name, place and stead for the principal.