how to pick your power of attorney

Who should a power of attorney be?

In addition, a power of attorney should be someone you trust, who you believe understands your values, and will do their best to act in your best financial and legal interest.

What to do if you are considering naming someone as your POA?

If you’re considering naming someone as your POA but aren’t sure if he or she is the right person, it might be helpful to have a conversation with the person you're considering and discuss the duties and responsibilities of the position, as well as the scope of your financial and legal affairs.

What is a Power of Attorney?

A power of attorney (POA) is someone who has the legal authority to speak and act on your behalf. When going through the estate planning process, it’s essential to determine what type of power of attorney you need. The two main types are a conditional POA and a durable POA.

Things to Consider When Choosing a Power of Attorney

When determining the person who can speak for you, in case you can’t. It’s essential to pick someone you not only trust but also someone younger, who lives nearby, and is assertive enough to make tough decisions on your behalf. This is likely to be one of the most challenging decisions you’ll make in your life.

Choosing More Than One Power of Attorney for Different Areas

Whether you are choosing a medical power of attorney or financial power of attorney, it’s important to note that you can appoint more than one person. However, to avoid any complications, it’s best to appoint people who get along and can work together.

What is a power of attorney or next of kin?

Power of attorney and next of kin are not the same thing, though the decisions they are able to make might be similar, depending on the circumstances.

Why do I need a POA or NOK?

Technically, most people have a next of kin, even if there is no one designated on medical or other documents. But you might not want your closest blood relative (as defined by the laws of your state) to be the person making certain decisions on your behalf. That could be what happens if you don’t take time to specify your own choice.

What roles or responsibilities does a power of attorney or next of kin have?

The responsibilities of the next of kin or power of attorney depend on how much preplanning you’ve done and what you designate in associated legal forms.

What rights does a POA or NOK have, and what decisions can they make?

Your next of kin, as designated by state law, has some rights. For example, most states have estate laws that protect next of kin rights to inherit. That’s especially true if you pass away without a will.

How do I assign someone as my power of attorney or next of kin?

You designate someone as your power of attorney by completing a power of attorney form and filing it with the right legal entity, if necessary.

Who can help me choose and assign a POA or NOK?

If you’re not sure who to choose as your power of attorney or next of kin, you can consult others for assistance.

Should I tell anyone about my POA or NOK designations, and if so, who?

Yes, you should let people know about your decisions. Here are just a few reasons to make your POA and NOK designations known.

Power of Attorney Forms: By Type (9)

Durable ($) Power of Attorney – To grant power to bank accounts, real estate, and any other financial-related acts. The powers are durable which means the form remains valid even if the principal should become mentally incompetent.

How to Get Power of Attorney (5 Steps)

An individual may get power of attorney for any type in five (5) easy steps:

Why Have Power of Attorney?

Accidents happen. Any person who should become incapacitated through an accident or illness would need to make arrangements beforehand for their financial and medial affairs.

Why is it important to choose the best person to file a power of attorney?

Because your agent can handle a wide variety of personal matters on your behalf including handling banking and credit issues, it is important that you choose the best person when you file your power of attorney forms.

What is a power of attorney?

A power of attorney is a legal document or contract that allows you to officially designate someone as your agent. Your agent, also known as an attorney-in-fact, can handle financial and legal matters on your behalf in the event that you become physically or mentally incapacitated. Because your agent can handle a wide variety ...

What are the different types of powers of attorney?

There are three types of power of attorney: durable, conventional and springing. The durable power of attorney contract gives your designated agent the right to handle business and financial matters like stock portfolios, bank accounts and real estate agreements on your behalf. It becomes effective as soon as you, the principal, sign the form and remains effective throughout your lifetime unless you revoke it. Conventional powers of attorney become effective as soon as they are signed and filed with the courts. The drawback to this type is that it becomes ineffective should you become incapacitated, the very reason that many people designate someone to handle their legal affairs. Springing powers of attorney only become effective after you become incapacitated and usually last throughout a life event such as a coma. You can revoke a power of attorney at any time.#N#Read More: Types of Power of Attorney for Elderly Family Members

What is range of authority?

Range of Authority. Not only do you have the ability to assign the type of power of attorney you want an agent to have, you can also identify the range of authority the agent will have. Assigning ranges of authority allows you to give rights by type to persons most capable of handling specific affairs. For example, you can assign an agent ...

When does a power of attorney become effective?

Conventional powers of attorney become effective as soon as they are signed and filed with the courts.

Can a spouse give you a power of attorney?

Spouse. If your spouse is generally in good health and someone who you trust with your finances, you could assign that person power of attorney rights. You could always select a close relative as a substitute power of attorney. Military personnel often give their spouses power of attorney rights while they are away in combat.

Can you assign an agent to file taxes?

For example, you can assign an agent to file your annual taxes. You can assign another agent to sell your house or buy and sell stocks on your behalf. If you give your agent authority to conduct bank transactions, make sure that you sign authorization forms and signature cards with your agent at the bank.

What is a power of attorney?

A power of attorney is a document where you authorize someone, often called an agent, to act on your behalf should you no longer be able to do so. Examples include paying your bills, managing your investments. It can be limited to one decision or it can be so broadly written that the agent can do almost anything on your behalf.

What are the different types of powers of attorney?

There are 2 types of powers of attorney: 1 A non-durable power of attorney (which may be tailored to permit your agent to complete a single transaction) ceases when you lose mental capacity. 2 A durable power of attorney stays in effect if you experience diminished capacity or become unable to manage your own affairs.

What does "knows his or her duties" mean?

Understands his or her duties, and a commitment to taking those duties seriously

When does a non-durable power of attorney cease?

A non-durable power of attorney (which may be tailored to permit your agent to complete a single transaction) ceases when you lose mental capacity.

Can an agent do anything on your behalf?

It can be limited to one decision or it can be so broadly written that the agent can do almost anything on your behalf. The authority you give is dependent upon the document’s language.

Is a power of attorney a good tool?

Powers of attorney are a wonderful tool in the hands of a trustworthy person. But because it comes with a tremendous responsibility, it can also be a dangerous tool in the hands of the wrong person. Learn all you can before choosing your power of attorney.