Power of Attorney
Executors working with the Power of Attorney
A power of attorney (POA) is a legal document allowing you to appoint a trusted person the “attorney” or “agent,” who need not be a lawyer to manage your financial, legal, or personal care affairs. It is essential for planning, as it ensures someone can make decisions if you become incapacitated. Power Of Attorneys can be general, specific, or durable/enduring, and must be signed while mentally capable.
Key Aspects of a Power of Attorney
- Purpose: Enables another person (agent) to pay bills, manage investments, sell property, or handle personal care decisions on your behalf.
- Types of Power Of Attorney:
- Enduring/Durable POA: Continues to be in effect even if you become mentally incapacitated.
- Non-Enduring/General POA: Terminates automatically if you become mentally incapable.
- Springing POA: Comes into force only at a future date or upon specific conditions (e.g., incapacity).
- Capacity & Requirements: You must be of sound mind and at least 18 years old (16 in some jurisdictions) to create a Power Of Attorney.
- Creation & Execution: Documents should be signed and dated by the principal (you) and typically witnessed or notarized to be legally binding.
- Revocation: You can cancel or change your power of attorney at any time, provided you are still mentally capable.
- Alternatives: If you do not have a Power Of Attorney and become incapacitated, family members may have to go to court for guardianship, which is expensive and time-consuming.
- POA’s authority ending immediately upon death, at which point the Executor takes over. They may work together during a transition period, and the same person can hold both roles.
