Assigning power of attorney to an agent is a major part of estate planning. It’s also one that you should make sure you have in place early. While most people never plan on having someone else make decisions for them, there is no way of knowing what may happen in the future. Between accidents, serious illness, and other factors, it is in your and your family’s best interest to assign power of attorney before hand.
What is a Power of Attorney?
A power of attorney is a legal document that assigns an agent that you name to make certain decisions for you if you become incapacitated or unable to properly take care of important decisions. Laws concerning the duration and scope of power of attorney assignments vary from state to state. This is one reason to contact a local estate planning attorney to ensure you follow the proper steps. There are also state-specific regulations that govern who may or may not be given power of attorney.
Decisions a Power of Attorney Can Make
It is up to you to decide the scope of decisions your agent will be able to handle on your behalf. You also have the right to assign different agents to specific areas. The most common decisions focus on:
• Decisions relating to your finances
• Decisions relating to medical care, including whether to start, stop, or withhold certain treatments and services
• Decisions to make gifts on your behalf
• Decisions regarding who can act as a guardian for your children
Who Can Be Given Power of Attorney?
You can assign power of attorney, or attorney-in-fact, to nearly anyone you choose, but it is often reserved for spouses, adult children, and other trusted individuals. Whomever you choose should be someone you trust to act responsibly on your behalf, and make decisions he or she honestly believes you would make for yourself, if possible. Many people choose to name different individuals for different aspects such as one for finances and another for health care decisions. This is why durable power of attorney and healthcare power of attorney are often listed separately. While you could name the same agent for both, they are different enough in scope that they need to be specifically detailed and make more sense to assign to more than one person.
Regardless of how you choose to assign an agent, and what scope you limit them to, you should also speak to the person in question. You want them to be aware of your choice and to make certain they are comfortable handling the responsibility.
What Should Be Included in a Power of Attorney?
When preparing a power of attorney, you should make clear what the person you are assigning as your agent will be able to make decisions about on your behalf. You should also clearly set limits for spending and other financial decisions, as well as requiring documentation of all activities performed for you. You will also need to consider whether others will be unhappy with your decision. If you believe this is a possibility, you can have witnesses on hand, or request that an attorney or physician write a statement stating that you were of sound mind when the decision was made.
Like other estate planning instruments, concerned (interested) parties can make legal challenges disputing your power of attorney. These challenges can be on the grounds of undue influence, a lack of capacity, or forgery and fraud.
The power of attorney is an important part of estate planning. Contact an experienced estate planning attorney at Clear Counsel Law Group for a consultation to discuss your intentions. They can ensure your documents are valid and truly reflect your wishes.