what am i able to do with durable power of attorney

• Durable POAs frequently are used during estate planning, when someone knows they will soon become unable to make decisions on their own due to age, illness, or disability.
• Healthcare decisions may include refusing medical care, procedures or treatment. With durable POA, you may also consent to treatment on your principal's behalf, or withdraw prior consent that your principal ...
• Financial decisions include the ability to access all bank, retirement, and credit accounts, sign income tax returns, collect Social Security or other government benefits, sell stocks and make investments, and ...

How to create a temporary power of attorney?

These powers include:

• Everyday medical decision-making;
• End-of-life decisions;
• Donation of organs;
• The nomination of a Conservator; and
• Autopsy authorizations.

How to enforce durable power of attorney?

Understanding and Using Powers of Attorney

1. About the Power of Attorney. A Durable Power of Attorney may be the most important of all legal documents. ...
2. Powers and Duties of an Attorney-in-Fact. What can I do as an Attorney-in-Fact? ...
3. Using the Power of Attorney. ...
4. Financial Management and the Liability of an Attorney-in-Fact. ...
5. Relationship of Power of Attorney to Other Legal Devices. ...

More items...

How can you get out of being power of attorney?

• The arrangement may not be convenient for them due to location or work responsibilities.
• The agent may not want the responsibility of looking after another person’s affairs.
• An agent may decide to resign if the principal’s decision to appoint one child as their agent leads to fighting between the other siblings.

How can I set up a power of attorney?

To get started, follow these basic guidelines for designating power of attorney:

• How to set up power of attorney.
• Consider durable power of attorney.
• Limited vs. general power of attorney.
• Immediately effective vs. springing power of attorney.
• Power of attorney for health care.

Does a power of attorney need to be notarized?

It depends on the state, since each state has its own rules for validating a power of attorney. Some require two witnesses and no notary, some requ...

How much does a power of attorney cost?

The cost for a power of attorney varies, depending on how you obtain the form and your state’s notary requirements. Online forms may be free, and y...

How many people can be listed on a power of attorney?

You can name multiple agents on your power of attorney, but you will need to specify how the agents should carry out their shared or separate duties.

What are the requirements to be a power of attorney agent?

Legally, an agent must be at least 18 years old and of sound mind.4 You should also choose someone you trust to act in your best interests.

When should I create a power of attorney?

You can create a power of attorney at any point after you turn 18. You need to create a power of attorney while you’re of sound mind.

What is Durable Power of Attorney?

The "durable power-of-attorney" is one of the most powerful and important planning tools that an attorney can recommend to a client, not only for estate planning, but also for Medicaid and other public benefit planning. When a person (the principal) signs a power-of-attorney, he gives another person ...

When does a power of attorney become effective?

Most powers-of-attorney become effective immediately upon execution by the principal. Many principals, however, are justifiably wary about giving a currently exercisable power-of-attorney to the agent. Accordingly, most states allow a durable power-of-attorney to be drafted in such a way that it becomes effective only upon the principal's disability. Such a legal instrument is called a "springing" power-of-attorney, signed when the principal has capacity and not effective until the occurrence of a triggering event such as the onset of disability of the principal. The primary disadvantage of the use of the springing durable power is that because its operation is triggered by disability, the occurrence of the event may have to be conclusively established to the third person in order to induce such person to accept the authority of the agent. The document, therefore, should contain a clear definition of the term "disability."

How does a power of attorney end?

In those states where, upon the appointment of a conservator, committee or guardian for the principal, the power-of-attorney terminates, it is advisable for the principal to name a person of his choice in the document to act as his conservator, committee or guardian. Lastly, a power-of-attorney can terminate if a specified time limit is specified in the document itself or if a specific event as set forth in the document has occurred.

What is the disadvantage of springing durable power?

The primary disadvantage of the use of the springing durable power is that because its operation is triggered by disability, the occurrence of the event may have to be conclusively established to the third person in order to induce such person to accept the authority of the agent. The document, therefore, should contain a clear definition ...

What is the power of attorney to make gifts?

The power to make gifts. In states where there is no specific legislative gift-making power, the attorney-draftsperson of the power-of-attorney should consider providing "gifting" authority for the agent. Such a power may be vital for both estate tax planning, in the event of the principal's incapacity, and for Medicaid ...

Why should powers of attorney be given specificity?

In drafting powers-of-attorney, care should be given to confer powers with as much specificity as possible in order to avoid the possibility of a court construing a specific omission as an intent to fail to grant that specific power. Such an adverse finding could be to the detriment of the principal's assets.

What does it mean when a person signs a power of attorney?

When a person (the principal) signs a power-of-attorney, he gives another person (the agent) the power to act in his place and on his behalf in managing his assets and affairs. The agent's powers may be broad and sweeping so as to include almost any act which the principal might have performed. It should be noted, however, that in general, acts which are inherently testamentary in nature, such as the authority to make or revoke a will, may not be performed by an agent.

Why do we need durable POA?

The point of a durable POA is to do it while you’re well and when you don’t actually need it. Because it stays in effect after you’re unable to take care of yourself, you’ll allow a seamless transfer of responsibility without leaving your loved ones to figure out who will pay your bills, make your health decisions, or protect your assets.

Who should be the initial agent for a POA?

Instead, experts suggest naming the child who leaves nearest to you and may be most hands-on with your care as the initial agent, and then having another child or family member listed as a backup. It’s always smart to have a backup agent, in case something happens to the initial agent, and he or she isn’t able to carry out the duties of the POA.

Why is an attorney in fact important?

This important document empowers an appointed agent (also known as an attorney-in-fact) to make financial and legal decisions on your behalf. It’s durable because it remains in effect even if you become incapacitated for any reason.

What is a springing power of attorney?

With a springing power of attorney, the authority to act on your behalf only kicks in after a doctor certifies that you’re incapacitated. (One drawback to keep in mind: That extra step can sometimes create delays.)

What happens if you are unable to manage your own affairs?

So if you are unable to manage your own affairs for any reason—for example, you’re unconscious in the hospital, or you develop severe dementia—your agent can step in and pay your bills or file your taxes, deposit checks in your bank account, manage your investments, handle insurance issues, and make many other important decisions. ...

Can you override a power of attorney?

You still have the right to control your life, your money, your property, and your assets. And you can always override your agent, if you’re of sound mind.

Can you have a power of attorney for health care?

You’ll also want to have a separate durable power of attorney for health care, or health care proxy, which appoints someone to make medical decisions on your behalf if you can’t speak for yourself. You can have the same person fill both of these roles, or choose different people if you think that the best person to make decisions about your medical care is not the best person to manage your finances. (But if you do pick two different people, make sure they can work well together.)

What is a power of attorney?

A power of attorney document allows you to choose a trusted person who will act on your behalf if you ever become incapacitated and are unable to make decisions for yourself. The person that you choose to have the power to make these decisions is called an agent or an attorney-in-fact, but the person does not have to be a lawyer. ...

When are powers of attorney valid?

Powers of attorney are valid once they are signed; Any compensation for decision makers must be explicitly detailed in the POA document; Third parties may not be held to be liable for upholding an agent’s decision who has a POA document that looks legitimate; and. A POA designation as an agent ends when you die.

What are the two types of powers of attorney?

The two types of powers of attorney are medical powers of attorney and financial powers of attorney. A medical power of attorney allows you to choose a trusted family member or friend to make medical decisions on your behalf if you are incapacitated. A financial power of attorney gives your agent the authority to make financial decisions on your ...

How many states follow the Uniform Power of Attorney Act?

This can lead to some confusion. To help to lessen the confusion that people might have, 25 states follow the Uniform Power of Attorney Act.

What is a financial power of attorney?

A financial power of attorney gives your agent the authority to make financial decisions on your behalf if you are incapacitated. In some cases, people choose the same person to serve as the agent for both medical and financial decisions. In others, people choose different people to serve in these roles.

What can an agent do?

What an agent can do. The powers that your appointed agent might have will depend on how your documents are written. Your health care agent might be able to make the following decisions: What types of medical care you will receive. The doctors you will see. Where you will live.

When does a POA end?

A POA designation as an agent ends when you die.

What is a durable power of attorney?

A durable power of attorney allows you to handle another person’s financial decisions on their behalf. All decisions made must be to the benefit of the person being represented. The one thing about the durable form that separates it from the rest is that it remains legal in the event the person being represented can no longer think for themselves.

How many alternate agents can you have under a durable power of attorney?

Under a durable power of attorney, two (2) or three (3) agents working together is forbidden. Only one (1) agent may be able to make decisions at a time with that agent having full control and decision-making powers as listed in the signed document.

What powers does an attorney in fact have?

The “Powers Of Attorney-in-Fact” section of this document list the various fiduciary powers the Attorney-in-Fact may potentially use to act in your name . The Attorney-in-Fact will only be able to engage in the actions defined in a given statement on behalf of the Principal if that statement is initialed by the Principal. Thus, as the acting Principal named in this paperwork, read through each statement on this list carefully. If you determine a statement adequately describes what you would like your Attorney-in-Fact to do in your name, initial the blank space that precedes it. If you do not wish your Attorney-in-Fact to have the authority described in a statement, simply leave that statement unmarked. The Attorney-in-Fact will be authorized to perform “Banking” functions such as depositing and withdrawing funds in your name with financial institutions if you initial the blank space just before the label “Banking.” If you do not initial the blank space corresponding to this statement, then you Attorney-in-Fact will not possess the authority to perform any of the actions listed here. You can deliver the principal power to access and control the contents of your safe-deposit boxes to the Attorney-in-Fact you named above, if you initial the blank line just before the label “Safe Deposit Box.” To restrict the Attorney-in-Fact from exercising such authority with safe deposit boxes then do not initial the second statement. The third statement on this list, “Lending Or Borrowing,” delivers the principal power the Attorney-in-Fact requires to perform a range of actions that fall under this category. For instance, if you initial this statement, your Attorney-in-Fact will have the right to make loans, borrow money, obligate you to participate in a joint loan, make and deliver a promissory note in your name, etc. You can allow him or her to pursue some of these actions while placing a restriction on others by either crossing out/deleting the unwanted terms or stating your wishes in the “Special Instructions” area below this section. You can also forbid your Attorney-in-Fact from engaging in any of these actions by leaving the blank space preceding it blank. If you intend for the Attorney-in-Fact to be able to manage your “Government Benefits” by applying for them and even receiving them on your behalf (i.e. Social Security, Medicare) then initial the fourth statement in this list. If not, then you should leave this statement blank to withhold such authority from your Attorney-in-Fact’s use when representing you. The “Retirement Plan” statement will give your Attorney-in-Fact the principal powers to handle certain actions with your retirement plans, including IRA’s, such as managing payment options, roll-overs, and benefits when you provide the corresponding blank line with your initials. It should be noted that the Attorney-in-Fact will not be allowed to decide or change beneficiaries through this statement, even if you do initial it and grant him or her the authority to engage in the above actions on your behalf. The next statement, titled “Taxes,” shall give your Attorney-in-Fact direct authorization to perform tax functions in your name and on your behalf. You must initial this statement to deliver such power in this document. Additionally, it is recommended you contact your local tax entity as additional paperwork may need to be filed separately with them. The Attorney-in-Fact can be given the power to handle your affairs with “Insurance” entities. This will exclude the right to change beneficiaries however, he or she will be able to pay premiums, make claims, purchase new policies, and cancel new policies in your name if you initial the next statement. Keep in mind this type of authority will apply to all insurance entities so that the Attorney-in-Fact can manage life, health, automobile, and even health insurance policies on your behalf. If you wish to appoint your Attorney-in-Fact with the “Real Estate” powers necessary to use your name with real property, then initial the blank space just before the words “Real Estate.” Such authority will enable your Attorney-in-Fact to represent you when you wish actions such as acquiring, selling, or conveying real estate be carried out by him or her in your name. If the Attorney-in-Fact should not have this type of authority, then do not mark this space. The authority to act with your “Personal Property” can be delegated to the Attorney-in-Fact when you initial the ninth statement in this list. Notice this will cover a wide range of decision-making powers that will give your Attorney-in-Fact abilities such as acquiring, purchasing, exchanging, leasing, and granting options to “…Sell And Convey Personal Property.” Bear in mind this will include the ability to enter or terminate credit arrangements in your name. If you have no intention of allowing the Attorney-in-Fact to represent you in this manner then do not initial this statement. The same “Power To Manage Property” that you wield can be delegated to the Attorney-in-Fact when you place your initials on the tenth blank space of this list. This statement will also place a wide scope of principal powers within the Attorney-in-Fact’s abilities so that he or she can act in your name with tangible and intangible interests as well as real or personal property. If you do not wish to give the Attorney-in-Fact such management powers, then leave the empty line preceding it blank. The principal authority to make, grant or transfer “Gifts” in your name can be delegated to the Attorney-in-Fact through your initials. Place them on the line that precedes “Gifts” to delegate such principal powers to the Attorney-in-Fact or leave it blank to restrict him or her from engaging in this type of representation. Your Attorney-in-Fact can be given the authority to “…Obtain And Pay For Legal Advice…” as well as represent your interest with administrative proceedings aimed at you, if you initial the “Legal Advice And Proceedings” statement. The list above provides the language to handle most delegations of principal power, however, if there are additional provisions that should be attached to the power’s description, several blank lines have been included in the “Special Instructions” statement. Here, you may place any limitations, restrictions, circumstances, additions, or extensions to the principal powers you approved above. If you require more space to deliver such a report, then you may add more lines (using the appropriate software) or report them in an additional document that is physically attached to this one before you sign it. If there are no such additions or limitations, it is recommended you populate this area with the word “None” or something similar.

How many witnesses are needed for a notary in MI?

MI – Notary Public or Two (2) Witnesses

What is a notary public?

A notary public to witness the signatures.

What happens if a power of attorney is revoked?

If after being notified, the agent remains acting on behalf of the principal, the agent would be considered engaging in illegal activity.

How to sign a state law?

Before we finalize this paperwork, we must document where it will be effective. Locate the label “State Law” then supply the name of the state where this document will be in effect and governed on the blank line after the term “State Of” Now, you must date and sign this paperwork. Provide the calendar date of this document’s signing sing the three blank lines after the words “In Witness Whereof…” Sign the blank line labeled “Principal’s Signature”

Why should a power of attorney be written?

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.

When does a power of attorney become effective?

The Power of Attorney is effective as soon as the Principal signs it, unless the Principal states that it is only to be effective upon the happening of some future event. These are called "springing" powers, because they spring into action upon a certain occurrence. The most common occurrence states that the Power of Attorney will become effective only if and when the Principal becomes disabled, incapacitated, or incompetent.

What happens if a third party refuses to honor a power of attorney?

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.

What is an attorney in fact?

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).

What is a living trust power of attorney?

A Power of Attorney empowers an Attorney-in-Fact to do certain specified things for the Principal during the Principal's lifetime. A Living Trust also allows a person, called a "trustee," to do certain things for the maker of the trust during that person's lifetime but these powers also extend beyond death. A Living Trust is like a Power of Attorney in that it allows a person to manage another's assets. Like an Attorney-in-Fact, the Trustee can do banking transactions, investments, and many other tasks related to the management of the person's assets. Unlike a Power of Attorney, however, the Trustee has control only over those assets that are titled in the name of the Living Trust.

What is a general power of attorney?

A "General" Power of Attorney gives the Attorney-in-Fact very broad powers to do almost every legal act that the Principal can do. When an Elder Law Attorney drafts a General Power of Attorney, the document still lists the types of things the Attorney-in-Fact can do, but these powers are very broad, as opposed to being a "Limited" Power of Attorney. People often do General Powers of Attorney to plan ahead for the day when they may not be able to take care of things themselves. By doing the General Power of Attorney, they designate someone who can do these things for them.

What is the name of the person who takes care of another's estate after the person dies?

An Executor, sometimes referred to as a "personal representative," is the person who takes care of another's estate after that person dies. An Attorney-in-Fact can only take care of a person's affairs while they are alive. An executor is named in a person's will and can only be appointed after a court proceeding called "probate."

What does it mean to have a power of attorney?

If you are an attorney, this means you have the power to act on someone else's behalf. You’ll often hear lawyers referred ...

What is a durable POA?

With durable POA, you may also consent to treatment on your principal's behalf, or withdraw prior consent that your principal made before losing consciousness.

Why are lawyers called attorneys?

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.

What to do if she agrees to allow you to become her agent?

If she agrees to allow you to become your agent, make sure you have whatever account numbers or other information you'll need to access her financial and medical accounts.

Where to sign POA?

Sign the document in front of a notary. Every state requires you and your principal to sign the durable POA in the presence of a notary. If you’re not sure where to find a notary, you can use the Notary Locator provided by the American Society of Notaries.

Can you type up a durable POA?

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.

Do you need multiple copies of POA?

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.

Who can be held accountable for POA?

The time and effort that an agent must invest to make decisions for another person can easily overshadow an agent’s own responsibilities and affairs. Third parties, such as banks, doctors and other family members, cannot be held accountable for upholding the decisions of an agent with a POA document that appears to be legitimate.

How many states have a power of attorney?

According to the Uniform Law Commission, as of 2021, a total of 29 states have enacted versions of the Uniform Power of Attorney Act, including Alabama, Arkansas, Colorado, Connecticut, Georgia, Hawaii, Idaho, Iowa, Kentucky, Maine, Maryland, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin and Wyoming. Adoption of this legislation is pending in the District of Columbia and Massachusetts.

What is POA in healthcare?

A financial POA gives an agent the ability to make financial decisions on behalf of the principal. It is common to appoint one person to act as an agent for both financial and healthcare decisions, but in some cases it may be wise to separate the two. Browse Our Free.

Why is POA important?

According to geriatric care manager and certified elder law attorney, Buckley Anne Kuhn-Fricker, JD, this provision is important because it gives a principal the flexibility to decide how involved they want their agent to be while they are still in possession of their faculties. For example, a financial agent could handle the day-to-day tasks of paying bills and buying food, while the principal continues to make their own investment and major purchasing decisions.

What is a generic POA?

A generic POA document that does not contain any limitations typically gives an agent broad power over medical or financial decisions. However, there are still a few things that an agent cannot do. One of the fundamental rules governing an agent’s power is that they are expected to act in their principal’s best interest.

What is POA in banking?

POA documents allow a person (the principal) to decide in advance whom they trust and want to act on their behalf should they become incapable of making decisions for themselves. The person who acts on behalf of the principal is called the agent. From there, it is important to distinguish between the two main types of POA: medical and financial.

How to change a principal's will?

Change a principal’s will. Break their fiduciary duty to act in the principal’s best interest. Make decisions on behalf of the principal after their death. POA ends with the death of the principal (The POA may also be named the executor of the principal's will or if the principal dies without a will, the agent may then petition to become ...

What are the two types of powers of attorney?

To clear things up, we’ll explain the two most common types of powers of attorney and the differences between each — durable (financial), and medical — as well as why you’ll need both to protect your assets and medical wishes.

What is a medical power of attorney?

What is a Medical (Health Care) Power of Attorney? Medical powers of attorney (sometimes called a health care power of attorney, advance directive, or health care proxy depending on your state) permit an agent to make a principal’s health care decisions in the event that they are unable.

How long do powers stay in effect?

Once powers have been granted, they will remain in effect until their powers are revoked, the contract expires (if an expiration date exists), or until the principal expires. Here’s a list of common matters for which an agent may be responsible to maintain on behalf of the principal: Banking – Deposits and withdrawals.

What does it mean if you don't have a POA?

The absence of a durable and/or medical POA can mean that family members will not be able to access accounts to pay for healthcare, taxes, insurance, utilities, and other important matters, and they won’t have clear instructions as to how to care for you if you should be faced with incapacitation.

What do I need for an estate plan?

What Else Do I Need for My Estate Plan? 1 Living Will – usually paired with a medical power of attorney. If this form isn’t included, you’ll want to create one as it puts your medical wishes into writing. 2 Last Will and Testament – designates who gets what upon your passing

What is a living will?

Living Will – usually paired with a medical power of attorney. If this form isn’t included, you’ll want to create one as it puts your medical wishes into writing. Last Will and Testament – designates who gets what upon your passing.

Can you have both powers in estate planning?

Both. While situations may vary from person to person, estate planning and emergency preparation involves having both powers assigned so that you’re covered financially and medically. When an individual becomes incapacitated, bills and other responsibilities don’t get put on pause.