Power of Attorney allows a person to give permission to another person or entity to act on their behalf in matters related to finance, business and medical decisions, among others. The person who creates the power of attorney receives the title of principal. If you do not have a power of attorney and cannot manage your personal or business affairs, it may be necessary for a court to appoint one or more persons to act on your behalf. Individuals named in this way are called guardians, curators, or committees, depending on local state law.
If a court proceeding, sometimes known as intervention, is needed, you may not have the ability to choose the person who will act on your behalf. Few people want to be subject to a public procedure in this way, so it's important to be proactive in creating the appropriate document to avoid this. A power of attorney allows you to choose who will act on your behalf and defines your authority and limits, if any. In some cases, greater security against the imposition of a guardianship can be achieved if a revocable living trust is also created.
It is often desirable, or even necessary, for another person to act on your behalf. You can give someone the legal authority to act on your behalf with a document called a power of attorney. If you grant a power of attorney, you are called the principal and the person to whom you give it is called the agent or the de facto agent. The person named in a power of attorney to act on your behalf is commonly referred to as your de facto agent or agent.
Choosing someone to have their power of attorney and specifying that it will work even if they lose their capacity guarantees that they have a plan to manage their financial and personal affairs if they are ever unable to do so. A de facto attorney's decision-making power comes into effect at different times depending on the POA you choose. Broad language that gives an agent all the powers to manage his financial affairs or make health care decisions may be sufficient for many purposes. It also means that if you have a sick parent who is already incapacitated, you will not be able to obtain a power of attorney to act on your behalf.
Anyone planning an unexpected disability or long-term care could consider a power of attorney to use in case of need, no matter how remote such events seem to be. In addition, the person to whom the power of attorney is granted has a legal fiduciary duty to make decisions that are in the best interest of the person they represent. A power of attorney (POA) is a legal document in which the principal (you) appoints another person (called an agent or de facto agent) to act on your behalf. If you have a POA and cannot act on your behalf because of a mental or physical disability, your agent or agent may be asked to make financial decisions to ensure your well-being and care.
You can use limited POAs to give different children definite and limited powers over different aspects of their finances. There are two types of POA, namely financial and medical care, which provide counsel in fact with general or limited powers. For example, if another person acts on your behalf to sell a car, the Department of Motor Vehicles will generally require that the power of attorney be filed before the authority of your agent to sign the title is fulfilled. If no land is to be treated, it is not legally necessary to sign a power of attorney in front of a notary or have it registered, but notarization may be prudent.
A medical POA, or permanent power of attorney for health care decisions, or health care power of attorney, is both a durable and an emerging POA. For example, the POA could simply empower someone to represent you at a real estate closure in another city. Others, however, in order to empower their agent to minimize state wealth tax, could continue or add such power. .