subject: Know More about a Power of Attorney [print this page] Know More about a Power of Attorney Know More about a Power of Attorney
When it comes to a power of attorney, the idea of authorizing someone else to make decisions on your behalf may make you nervous. According to Ron Nevin, an attorney in Nashville, Tennessee, powers of attorney are intended to ensure that if you're unable to make decisions for yourself, they are made with your best interests in mind. Here, Nevin explains the scope and limitations of powers of attorney and who should consider getting one.
In a power of attorney, an individual designates someone to act on his behalf should he become incapable of handling his own affairs. When you give someone power of attorney, you are called the "principal" and the individual you've authorized to act for you is called an "agent" or an "attorney-in-fact." Despite the terminology, the person you authorize to act on your behalf need not be a lawyer. You can authorize anyone to act on your behalf so long as you trust him to act in your best interests.
The Scope
Limited: Powers of attorney vary widely in terms of scope. Some powers of attorney are very limited, as in a case where you authorize someone to act on your behalf only in the context of a specific event. A limited power of attorney is appropriate if you are going to be out of town or unavailable, for example, for a real estate closing or other document signing, and you wish to authorize someone else to sign for you in your absence.
Broader: A broader power of attorney can be used in situations where you are incapable of handling your own affairs, whether for a short time (such as a hospital stay) or for an extended period. In such cases, another individual may be authorized to deposit checks, withdraw funds from a bank or pay bills on your behalf.
Durable: A durable power of attorney is the most common type of power of attorney. It allows you to designate someone in advance who will be authorized to make decisions on your behalf in the event that you become mentally or physically incapacitated. Having a durable power of attorney in place is important for anyone who is elderly or chronically ill.
The Limitation
First, executing a power of attorney doesn't mean that you're no longer able to make your own decisions. In fact, as long as you are mentally and physically able to handle your own affairs, the individual named in the power of attorney to is obligated to follow your instructions. Only when you become incapable of making decisions on your own is he authorized to make decisions on your behalf.
Second, a power of attorney may be revoked at any time if you're unhappy with the actions of the person you've authorized to act for you, or if you would like to choose someone else. Assuming it is not revoked, a power of attorney is valid until you die. At that point, responsibility for your estate is assumed by the executor named in your will or a personal representative named by the court.
Finally, you may not execute a power of attorney if you're not mentally competent. If you become mentally incapacitated and do not have a power of attorney in place, the court may appoint a guardian or conservator to act on your behalf instead.
Just as a will makes your wishes known with regard to the distribution of your assets after your death, a power of attorney makes your wishes known about who should be in charge if you become incapacitated. So creating a power of attorney is an important part of planning for the unexpected and unforeseeable. Although no one wants to think about the possibility of his own death or incapacitation, planning for each is one way to lessen your family's burden when the unexpected does occur.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Publication of this article and your receipt of this article does not create an attorney-client relationship.
