I recently retired, and my children and friends keep telling me that I need to create various documents -- like a "power of attorney," or some people tell me a "durable power of attorney." What's the difference between the two? And will these two documents be enough to ensure that someone takes care of both my finances and my medical decisions if I get so sick that I can't take care of things myself?.
A power of attorney is a legal document you can use to give someone else the authority to take specific actions on your behalf, such as signing your checks to pay your bills or selling a particular piece of real estate for you.
Yes. At the time the Durable Power of Attorney is signed, the Principal must have mental capacity. Although a Durable Power of Attorney is still valid if and when a person becomes incapacitated, the Principal must understand what he or she is signing at the moment of execution.
Even a Durable Power of Attorney, however, may be terminated under certain circumstances if court proceedings are filed.
Powers of Attorney should be written clearly so that the Attorney-in-Fact and third parties know what the Attorney-in-Fact can and cannot do. If you, as Attorney-in-Fact, are unsure whether or not you are authorized to do a particular act, you should consult the attorney who prepared the document.
An Attorney-in-Fact may not sign a document stating that the Principal has knowledge of certain facts. For example, if the Principal was a witness to a car accident, the Attorney-in-Fact may not give a statement for the Principal stating that the light was green.
An Attorney-in-Fact is looked upon as a "fiduciary" under the law. A fiduciary relationship is one of trust. If the Attorney-in-Fact violates this trust, the law may punish the Attorney-in-Fact both civilly (by ordering the payments of restitution and punishment money) and criminally (probation or jail).
Under some circumstances, if the third party's refusal to honor the Power of Attorney causes damage, the third party may be liable for those damages and even attorney's fees and court costs. Even mere delay may cause damage and this too may subject the third party to a lawsuit for damages.
An affidavit is a sworn written statement. A third party may require you, as the Attorney-in-Fact, to sign an affidavit stating that you are validly exercising your duties under the Power of Attorney. If you want to use the Power of Attorney, you do need to sign the affidavit if so requested by the third party.
If you are an attorney, this means you have the power to act on someone else's behalf. You’ll often hear lawyers referred ...
If a pre-printed form includes too many problematic clauses, either for you or for your principal, you can always type up your own durable POA from scratch. Some states such as California have language written into their probate code that will suffice to create a durable power of attorney.
You’ll often hear lawyers referred to as attorneys-at-law, or simply as attorneys, because they have the power to act on behalf of their clients in particular legal situations. Likewise, when someone, as the principal, grants you durable power of attorney, you become their agent.
You will need multiple copies of each POA to distribute to anyone who requires proof that you are authorized to act on your principal's behalf. For example, you may need to file the medical POA with all of your principal's doctors or specialists.
Understand your principal can revoke your authority at any time. If your principal's condition improves, or if she decides she no longer wants a POA, she can revoke it whenever she wants as long as she's mentally competent.
If your principal doesn't agree with something and doesn't want to include it, she can cross it out on the form and initial the change, or have you retype the form without that clause.
Verify the authenticity of the power of attorney document presented to you. In many states, a power of attorney must be notarized. The presence of a notary's stamp and signature is usually enough evidence that the power is a legitimate document. If you're concerned, run an internet search for the notary and ask him or her to verify that the stamp on the document is the notary's official seal. Contacting witnesses is another avenue to explore. Often, powers of attorney bear the signature of an independent witness who watched the principal sign the power. See if you can contact the witness – the address should be written beneath the witness's signature – and ask if she remembers attending the signing.
A power of attorney is an instrument that a person uses to grant authority to an agent to act on his or her behalf. The two different types of instruments are health care and financial powers of attorneys. A third party preparing to transact business or take action in reliance on a power of attorney needs to verify who really does have authority ...
A third party preparing to transact business or take action in reliance on a power of attorney needs to verify who really does have authority under such an instrument to make decisions for another person.
A duly authorized agent named in a power of attorney should have the original instrument in his or her possession. If you are being asked to take action by an individual contending he or she is an agent authorized to make decisions through a power of attorney, you must review the original instrument.
Often, powers of attorney bear the signature of an independent witness who watched the principal sign the power. See if you can contact the witness – the address should be written beneath the witness's signature – and ask if she remembers attending the signing.
Check the power of attorney records at the register or recorder of deeds in the county where the individual who created the instrument resides. In some states a power of attorney can be filed with the register or recorder of deeds. However, this is not the common practice today.
If a power of attorney does not appear authentic to you, and you cannot independently verify its authentic ity, do not transact business with the purported agent. If the power of attorney turns out to be fraudulent, you can be held liable for any losses sustained by the alleged grantor through the transaction.
When choosing your power of attorney, talk to the person you are considering. Be sure that they feel they could serve in this capacity. Encourage the person to be honest.
While your power of attorney may not agree with everything you want, they have to be willing to follow through even though they disagree. If you feel pressured to change your opinions, then that is a sign that this person would not make a good representative for you.
Regardless of the name, a power of attorney is someone you choose to make health and medical decisions for you if you're unable to make them for yourself. 1. For most people, having this person in place to make medical decisions when they are no longer able to do so can bring peace of mind. Some people choose to designate a power ...
But really, you can designate your power of attorney anytime you want. You simply need to have an attorney draw up the paperwork. You also can specify when the duties of the power of attorney begin to take effect.
To assign a healthcare proxy, you'll fill out a document in a hospital setting and just need two witnesses to complete it—you do not need a lawyer for this purpose. A power of attorney, however, is a more formal document that can have medical as well as legal and financial implications.
A durable power of attorney, sometimes called a DPOA for short, means there is language within the legal document providing that this power extends to your agent even in the event you become incapacitated and unable to make decisions for yourself.
A durable power of attorney generally remains in effect until the principal revokes the powers or dies, but can also be terminated if a court finds the document invalid or revokes the agent's authority, or if the principal gets divorced and the spouse was the agent.