Everyone should have a power of attorney document in place in case of an emergency situation such as a serious illness or incapacitation making it impossible to make decisions concerning health care and living arrangements. Having this legal document becomes more important as individuals age because it is more likely that a person will have health issues and unable to speak for one's self.
Choosing an Attorney-In-Fact
One of the first things to consider is choosing a responsible person to act as an agent to make important decisions. Most individuals select a relative such as a spouse, adult child, or sibling to make difficult choices concerning finances and medical treatments. In many cases, the person selected as an attorney-in-fact or agent is already a caregiver for an infirm or elderly individual. Anyone chosen to act as an attorney-in-fact is required to behave honestly with the person represented. Occasionally, an individual might hire a professional to act as an agent. In this situation, it is important to have an accurate contract specifying the paid agent’s duties.
Power of Attorney Documents
Choosing an agent and preparing the official documents must occur while the grantor has excellent mental faculties. An individual with a severe injury or chronic illness is unable to make a power of attorney decision that is legally binding. In several geographic areas, a verbal power of attorney is acceptable in emergency situations. In order for a nursing home, financial institution, or government agency to accept an agent’s authority over finances and important matters, the document must be in writing. It is a good idea to have several official copies of a power of attorney document for businesses to keep on file verifying an agent’s authority. Each document must have a handwritten date and signature of the grantor to make it legally binding. Anyone wanting to complete power of attorney forms can find the documents easily online or from various organizations. Because each geographic region has its own rules concerning power of attorney documents, it is important to verify a grantor is completing the correct forms to ensure validity.
To prevent difficulties while using the document, having the power of attorney witnessed and signed by a notary public is suggested by legal experts. There are different circumstances in which an individual can write in a power of attorney document to limit an agent from particular actions. Alternatively, a grantor can create a general document providing a broad scope of choices to the agent.
Writing a power of attorney document is often complicated and emotional for individuals considering poor health leading to death. The best time to create the document is in advance of any health issue that make it difficult to make decisions. There are a variety of different power of attorney formats that are suitable for different people and situations.
Durable Power of Attorney
A durable power of attorney format is frequently selected because it takes effect immediately following execution of the document and remains in effect even when the grantor is incapacitated by an illness or injury. It gives the attorney-in-fact the power to act independently in making decisions on all financial affairs with or without the principal's knowledge or consent. However, durable power of attorney documents become ineffective when the grantor dies.
Limited Power of Attorney
A limited power of attorney is useful for representation in specific transactions. For example, a principal who buys and sells houses at the same time in different states may need a limited power of attorney for an agent in the remote location to execute simultaneous transactions. A limited power of attorney specifies when it is in effect and the transactions it authorizes.
Springing Power of Attorney
Many individuals choose a springing power of attorney format that only takes effect when it is determined the grantor is mentally or physically incapacitated. In most cases, physicians will have to document that the grantor is no longer able to make decisions. The word springing refers to the grantor writing information in the document stating exactly when the agent can take over decisions concerning a variety of things, such as finances and medical treatments. Physicians are not allowed to provide information on a client’s health unless the grantor releases this right in the springing power of attorney document. Grantors can choose to make health care directive power of attorney documents that only allow agents to make decisions concerning medical treatments when the grantor is incapacitated mentally or physically.
