Top 3 Reasons to Create a Power of Attorney (POA) Document
There are certain life situations and time periods when creating a Power of Attorney
(POA) document is highly recommended for you and your family's peace of mind.
Here are the top three reasons to create a Power of Attorney document:
1. You want to provide authority for someone to act temporarily on your behalf in your absence.
Completing Power of Attorneyforms ensures that someone is able to make decisions on your behalf when you are not present or able to do so. When you grant another personPower of Attorney, you are the "principal" and the person who is authorized to act for you is your "agent" or your "attorney-in-fact." An agent withGeneral Power of Attorney can make a broad spectrum of decisions on behalf of the principal. An Agent is not required to be a lawyer. For example, an agent withGeneral Power of Attorneyis able to make decisions on behalf of the principal in situations ranging from business to medicalto financial. Individuals who are going to be away for an extended period of time often designate an agent to act on their behalf during their absence.
2. You want to provide authority for someone to act on your behalf in case you become incapacitated.
Many individuals name someone as their agent for healthcare and/or financial matters in the event that they become unable to make their own decisions. This type ofPower of Attorneycan be general or specific, but must also be durable. ADurable Power of Attorney is one that remains in effect if the principal becomes incompetent or is otherwise incapable of handling his or her affairs.
3. You want to provide authority for someone to act on your behalf in specific situations.
An agent withSpecial Power of Attorney has authorization to act only in particular situations as specified in the legal document. Note: A separate Power of Attorney should be created for each person. A "joint" Power of Attorney is not valid.
Top 3 Reasons to Create a Power of Attorney (POA) Document