why is it important to have a power of attorney

6 Reasons Why You Should Have a Power of Attorney

• Anything can happen to you at any time. It is often thought that having a Power of Attorney is only necessary if you are retired, elderly or have a long-term ...
• It saves disagreements and financial issues. If you have a Power of Attorney, your wishes will be clear. ...
• A Power of Attorney saves time and money. ...

Full Answer

What are the reasons for power of attorney?

Why Should I Have a Power of Attorney? A power of attorney is a legal document that allows an individual to appoint another person or entity to act on their behalf to administer their affairs. The person who forms the power of attorney is known as the principal and the person granted the authority over the affairs is the attorney-in-fact. A power of attorney is in effect only as long as …

Why should I have a power of attorney?

Dec 24, 2019 · Power of attorney is a pro-active measure to protect your future self from risks and hazards that you’d prefer not to think about now – and definitely don’t want to experience later. What is Power of Attorney? Power of Attorney (POA) is a document that gives a person or organization permission to act on your behalf.

What is the procedure for establishing power of attorney?

Oct 18, 2013 · It is important to choose this person carefully because he or she can control your assets. A power of attorney can be very handy in the event that one is unable to take care of his/her own financial affairs, for reasons such as extended travel or illness. This type of document becomes even more important, however, in the event of mental incapacity.

Do I need a power of attorney?

A Power of Attorney is a legal document, usually conferred under state laws in the U.S., that allows one person to grant another person the legal right to act on their behalf. The person who signs the Power of Attorney is the “Principal.”. The POA grants legal authority to another person (the “Agent” or “Attorney-in-Fact”) to make legally-binding decisions on behalf of the Principal …

Why is it important to choose a power of attorney?

It is important to choose this person carefully because he or she can control your assets. A power of attorney can be very handy in the event that one is unable to take care of his/her own financial affairs, for reasons such as extended travel or illness.

What is a power of attorney?

A “power of attorney” is a grant of legal rights and powers by one person to another. The person granting the powers is know as the “principal,” and the person receiving the power is known as the “agent” or “attorney-in-fact.”.

What is a durable power of attorney in Massachusetts?

Massachusetts Uniform Durable Power of Attorney Act was enacted to allow a standard power of attorney document to stay in effect in the event the principal became mentally incapacitated; hence the term “durable power of attorney.”. When one does not grant a “durable” power of attorney, family members of a person stricken with a mentally ...

Can a principal give an attorney in fact?

The principal can give his/her appointed attorney-in- fact broad or limited financial management. For example, you may want to limit the duration of the instrument to a period of time or limit what powers you give to the agent. Before you grant and sign a power of attorney, be sure you understand exactly what you want your attorney-in-fact ...

What is a Power of Attorney (and Why do I need one?)

A Power of Attorney is a legal document, usually conferred under state laws in the U.S., that allows one person to grant another person the legal right to act on their behalf.

What kinds of POAs are available?

The original term for the legal document was a “Durable Power of Attorney.” They were intended to provide a permanent and “relatively simple, inexpensive, alternative to court supervision of guardianship .

Why do you need a POA?

As described previously, if you or a family member or friend are temporarily or permanently unable to make sound judgements and decisions about personal finances, business matters, healthcare, or other personal matters, a POA provides a simple legal vehicle to allow someone else to make those decisions for you.

How to obtain a POA

You do not need a licensed attorney to obtain a power of attorney. State attorneys general and legal help websites typically provide resources explaining how POAs work in your state and include online or downloadable POA forms. (See the links under Sources below).

Sources

The original “Uniform Law” adopted by many states in 1979 may be found at https://www.uniformlaws.org/committees/community-home?CommunityKey=d7d4819d-01de-42d4-9f79-a9ca7bbbf076 and https://www.uniformlaws.org/committees/community-home?CommunityKey=d7d4819d-01de-42d4-9f79-a9ca7bbbf076.

Why is it important to have a power of attorney?

Here’s why it’s so important. Without a power of attorney, no one can sign legal documents or cheques for you. This means bills can be left unpaid, and your dependents may go indefinitely without the benefit of your financial support. Your assets will be locked up.

What is a living will?

Living Wills. A power of attorney for property takes care of your property. A living will takes care of you. It’s a document that outlines life-support measures you would or would not accept, or other details regarding your medical care in case you’re unable to make decisions for yourself.

Should I plan my funeral in advance?

You can plan your funeral in advance so that when you die and your family is in mourning, they will know exactly what you wanted. You can arrange everything in advance and pre-pay your funeral. Your will should contain all the details and costs so that no one has to guess what has been done and what still needs to be done.

Can you be incapacitated by illness?

Although it’s grim to think about being incapacitated by illness or an accident, it does happen and it’s best to be prepared just in case. When you appoint a person with “power of attorney”, you trust that person to make decisions for you in case you’re unable to because of illness, accident or absence.