What is a Power of Attorney?

There are times when you may need for someone else to take care of certain legal matters for you, either because you’re temporarily incapacitated or you’re not physically in a certain location to sign documents and perform other legal duties. When this happens, you can assign a power of attorney (POA) to another person or entity so that your needs are taken care of in your absence. A POA is a fairly common legal document that is used by millions of people every day, and it can make your life a whole lot easier in certain situations.

What Is a Power of Attorney?

A power of attorney is simply a legal document that allows someone else — either a person or an entity — to sign legal documents and make legal decisions for you. POAs can be either temporary or permanent. As a rule, there are also two types of POAs: a general power of attorney and a special power of attorney. The latter is used just for a specific duty, e.g., signing a document that allows for a specific medical procedure for that person. POAs can also be durable, which means that they will still be in effect if you become incapacitated. Normally, POAs stop being in effect once a person becomes incapacitated, although a new one can be drawn up afterwards if needed.

Are There Things That a POA Cannot Do?

After you ask what is a power of attorney, you should also learn what a POA can and cannot do. A POA does not automatically cover all legal tasks and responsibilities; in fact, there are a handful of situations that it does not cover. These include:

• Breaking the fiduciary duty of acting in the person’s best interest.
• Changing a person’s will.
• Changing the POA or transferring it to someone else.
• Making decisions for that person after their death. This rule has a few exceptions, so you should check with your lawyer if this happens to you.

If you’re considering allowing another individual to be assigned your POA so that he/she can make legal decisions for you, you should be careful who this person is. For one thing, he/she will have access to your financial accounts and can change the course of your life if you hand the responsibility over to someone who is careless in the decision-making process.

Things to Know About Powers of Attorney

So, what is a power of attorney, other than a way to allow another person to make legal decisions for you? First of all, this person may also be allowed to make medical and financial decisions for you; regardless of who you choose, abuses are not that uncommon. In fact, many people have been disappointed and cheated in some way by choosing the wrong person to be in charge of their POA even if that person is their spouse. This isn’t to say that you need to be paranoid about who you choose to take over your POA; it just means that you should put some thought into who that person is before you make your final decision.

It was mentioned earlier that a durable power of attorney is one that continues to be in effect if you become incapacitated. There is also a springer POA, which only takes effect, or “springs” into action, once you become incapacitated. If you’re unsure which type of POA you need, the best thing to do is discuss your concerns with your lawyer so that you can choose the best one for your needs in the end.

If you are asked to be the agent of a power of attorney, you’ll need to take this request seriously. It is a huge responsibility to be in charge of someone’s financial or medical needs, so before you agree to this, you should talk with a lawyer about exactly what you will be expected to do once you sign the paperwork.

Make Sure That You Know What You’re Doing

Whether you’re asked to be in charge of someone’s power of attorney or you need a POA drawn up for yourself, just learning the answer to the question, what is a power of attorney, isn’t enough. You’ll want to ask a lot of questions and “what if’s” so that you completely understand what you’re getting yourself into and you’re not disappointed or cheated later on in any way. We ca help up, just contact us today to get the answers you need.