5 Things to Consider Before Executing a Power of Attorney
Executing a power of attorney is a powerful thing to do, legally. By doing it, you are essentially giving someone the power to make decisions, both medically and financially, for you. It is also a useful tool, especially in certain cases. Here are five things to consider before executing a power of attorney.
What is a Power of Attorney
First, it is important to know what a power of attorney is. A power of attorney can be very beneficial as it is a legal action with the ability to allocate decision making authority to someone else. The person granted power can perform actions such as paying bills, executing documents, making medical decisions, or managing property, depending on the scope of authority given.
A power of attorney is a legal document allocating the right to make certain decisions on another’s behalf. It appoints an “agent” or “attorney-in-fact.” The individual retains the right to make decisions on their own. Power of attorney can be limited in scope to making either financial or health care decisions on the individual’s behalf.
Know Your Rights
It is important to understand how a power of attorney affects your rights. A power of attorney can be granted on a temporary, continuous, or permanent basis. Revoking power of attorney often requires a separate legal process, which can be costly and difficult. However, not including a power of attorney document or in your estate plan can put your loved ones at risk.
Assess the Risks Involved
There are several decisions to make when executing a power of attorney document and some things to consider. You will want to make sure that your spouse or descendants will have enough to cover all the expenses should you become incapacitated. Otherwise, they could be hit with large legal bills and other expenses. Delays due to the absence of documentation for banking and insurance commitments can add to the burden that comes with the incapacitation of a family member. It is a good idea to discuss these risks with an experienced attorney.
Get It in Writing
Make sure any document asserting power of attorney is signed and accessible. A written document will display your intent in executing a power of attorney. In the case where the person taking on that role acts in a dishonest way, the signed document will be proof of your intentions. It is crucial to get all the details of a Power of Attorney agreement in writing.
Define Limitations
Unfortunately, cases of families using power of attorney to exploit a loved one do exist, and even if that could never happen in your family, it is important to define the limits of the power you are signing over. An improperly broad Power of Attorney can bring a mess to your affairs. However, a good estate planning attorney can include important terms and limitations that can help prevent fraud and abuse. You are signing a powerful tool, which can help you and your family when the worst-case scenario happens.
Consult an Estate Planning Attorney
We mentioned it earlier but consulting an experienced estate attorney can help you navigate the process and make sure your power of attorney document is serving your interests. An experienced estate planning attorney can help ensure your rights are protected from the beginning, avoiding the costly and potentially irreversible mistakes that novices can make when executing Power of Attorney documents. Contact The Mattar Firm today to set up a time to talk with an attorney about your specific situation , 239-222-2222.