In this article you will be exposed the SIMPLEST guide about Power Of Attorneys.
So, if you want to know:
- What a power of attorney is?
- When a power of attorney is utilized?
- What the agent of a power of attorney is responsible for?
- What does a power of attorney allow you to do?
- How to make my choice of a power of attorney legally binding?
- Tips for creating a power of attorney
Then this article is for you.
Introduction to power of attorney?
A power of attorney is important if you’re in a position in which you cannot make decisions on your own behalf.
A power of attorney (POA) gives you legally binding power to appoint someone to make decisions in regards to your property, medical, or financial affairs.
It is probably very troubling to entertain the possibility of needing one.
However, a power of attorney is an important part of your plan.
A power of attorney (POA) is traditionally utilized in a situation in which you become incapable of managing your own affairs.
Each type gives your attorney a different level of control.
Some powers of attorneys are able to manage your affairs immediately, and others only start once you become incapacitated.
In this post, I will explain the role of an attorney-in-fact (the one who manages your affairs) and what authority the POA grants.
I will provide an in-depth analysis of the different types of POA’s and demonstrate 4 tips for creating them.
What is a power of attorney?
The definition of a power of attorney is according to google:
A POA gives the attorney aka the agent the power to make decisions to manage your affairs.
Depending on the type of POA you create, it will dictate which specific affairs you are granting power over tomange.
The power that an attorney-in-fact has depends on which POA you chose.
Regardless of which type, every type of POA becomes annulled the moment you pass away.
From that point forward, a last will and testament or a living trust declares the instructions for the management of your assets and affairs.
What is the agent of a Power of Attorney responsible for?
Your agent or attorney-in-fact is a fiduciary.
What does that mean?
Being fiduciary means that your agent will be responsible for some or all of another’s person’s assets and affairs.
Your agent or attorney-in-fact must act practical and conventional to the person whose affairs and assets he is managing.
In the event that he abuses his duties, he can face criminal charges or can be liable in a civil case.
What does a power of attorney allow you to do?
The power of attorney document will not be legally binding until it is signed and executed according to the laws of your specific state.
Meaning, your agent cannot legally make decisions on your behalf prior to the POA going into effect.
You must be mentally present when appointing your agent as an agent.
Any terms that you reckon need clarification may be outlined in your POA document.
For this reason, it is simpler to hire an attorney during the process of appointing an agent.
How to make my choice of a power of attorney legally binding?
In order to make your POA document legally binding, you need to sign and execute your document according to the laws of your specific state,
This will usually involve signing while witnesses are present or having the POA document notarized.
It may be in your best interest to give a copy to your agent or letting your agent know where they can find a copy if it will be necessary.
3 tips for creating a power of attorney
Tip #1: Decide how many agents you'll need
It is within your rights to appoint multiple attorneys-in-fact to represent your interest.
You should decide whether these agents will act together or independently when making decisions.
Having a few agents may be beneficial in the event that your medical or financial affairs are complicated.
However, having multiple attorneys-in-fact may prolong the process of deciding on time sensitive affairs; if there is a conflict of interest.
Similarly, only having a single attorney-in-fact may present limitations.
It is in your best interest to prepare a backup agent who can step up to bat if your original agent is unable to execute his duties.
Tip #2: Find someone you trust with your best interests
Trust is probably the biggest x factor when deciding who should be your agent for your power of attorney.
Whether your agent will be a friend, family member, organization, or attorney, be sure that they will look out for your best interests, won’t abuse the powers given to them, and respect your wishes.
Only choose someone to be your agent for your POA who you trust to take the responsibility seriously.
Should you, a friend, or relative suspect wrongdoing on the part of your agent, report the suspected abuse to a law enforcement agency and consult with a lawyer.
Tip #3: Make sure you receive updates
It is extremely important for an agent to keep accurate records of all transactions done for you.
They should provide you updates from time to time, to keep you informed.
It does not make a difference if this is done through a third party or done directly.
If you’re unable to review these updates on your own, be sure to direct your agent to u[date a third party that you approve of.