The Power of A Power of Attorney?

Answer 1

So, what is a Power of Attorney?

A power of attorney is a written document which grants another person, called an agent or attorney in fact, the power and authority to make certain decisions and act legally on behalf of another person, called the principal, who authorizes and grants the power. Notwithstanding the title of the document, the agent authorized to act does not have to be an attorney - that's the power of a power of attorney. Spouses usually name their husband or wife to be their agent. A relative, friend or anyone you trust can be named as your agent.

The power of attorney is often granted for a specific time period, e.g., while the principal is out of the country or hospitalized; for a specific purpose, e.g., to run a business or purchase a home; or for a specific circumstance, e.g., to manage property because of the principal's illness. A power of attorney granted during the principal's life terminates at the moment of the principal's death- hereafter your will, or the law of intestacy, governs the handling of your estate. Keep in mind, a power of attorney document is not a substitute for a will.

Types of Power of Attorney

A Power of Attorney is known by different names and can cover different areas and handle different functions.

• Medical Power of Attorney

It enables the agent to make decisions for medical care when the principal becomes incapacitated and is unable to make such decisions. It may also be called a durable power of attorney for health care.

• The financial durable power of attorney should be witnessed by a notary public or attorney. If the durable power of attorney deals with the power to sell, lease, or otherwise dispose of real estate, you should have the power of attorney recorded in the Registry of Deeds, located in the county courthouse where the property is located.

• The word "durable" means that your agent can continue to make decisions for you if you become incapacitated. The agent will still be obligated to act in your best interest, making decisions and using your money and property only for your benefit.

By establishing a durable power of attorney, you are giving the agent some of the following powers:

• To spend your money, cash checks, and withdraw money from your bank accounts

• To sell your property

• To pursue insurance claims and legal actions

If you do not establish a durable power of attorney and you become mentally incapacitated, it may be necessary for a court to appoint a guardian or conservator for you.

Power of a Power of Attorney

Executing a power of attorney does not mean that you can no longer make decisions; it just means that another person can act for you also. For example, you may be hospitalized for a brief period of time and need someone to deposit your checks in the bank or pay your bills. As long as you are capable of making decisions, the other person must follow your directions. You are simply sharing your power with someone else.

How Much Does it Cost?

Legally, no payment is required. If payment is desired, it should be clearly stated in the power of attorney document. However, if an attorney-in-fact has to run a business or manage complicated financial affairs, then payment is appropriate.

If you change your mind

If for any reason you become dissatisfied or are no longer comfortable having your chosen agent or agents handle your affairs, you have the right to revoke the agent's authority under the power of attorney at any time, as long as you are of sound mind. Be certain to distribute copies of that statement to your agent and to any institutions and agencies, such as banks and hospitals that had notice of your power of attorney. After you revoke the durable power of attorney, you can 1) execute a new durable power of attorney naming someone else as your agent to handle your affairs; or 2) handle your affairs on your own.

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