What is a Power of Attorney?

What is a Power of Attorney?

A Power of Attorney is a legal document you sign that gives someone else the authority to handle your personal affairs. There are generally two families of Power of Attorney documents:

 

1. Medical Power of Attorney - A medical Power of Attorney allows you to appoint someone to make medical decisions for you. In some states, such as Massachusetts, a medical Power of Attorney is called a Health Care Proxy.

 

2. Financial Power of Attorney - A financial Power of a Attorney allows you to appoint someone who can have access to your finances and make financial decisions when you cannot.

 

What kinds of things does a Power of Attorney cover?

You can make any Power of Attorney as general or as specific as you like. For example, you can state in a medical Power of Attorney that you would like your representative to make any medical decisions that you would be able to make. Alternatively, you could specify that you only want your medical Power of Attorney to govern life support decisions.

 

You do not lose control of your affairs by creating a Power of Attorney; it is more like sharing control with the person you name as your personal representative.

 

Who can you name as your personal representative?

You may appoint anyone over the age of eighteen (18) to be your personal representative in your Power of Attorney. Your representative does not have to be a family member, but it should be someone you trust to act in your best interests.

 

You may also elect to have more than one personal representative. However, when using more than one representative, you should specify whether each representative has the power to act alone or if they must act jointly on your behalf. For example, is the signature of either your son or daughter sufficient or do you want both to have to sign to convey your consent?

 

After you decide who you would like to name as your personal representative, you should make sure that the person you have chosen is ready and willing to accept this responsibility. You should also discuss your wishes with your personal representative before creating your Power of Attorney.

 

Does a Power of Attorney become active immediately?

Not necessarily. Some states allow you to complete a Power of Attorney that does not take effect unless you become incapacitated. You should check with a legal professional about the specific rules in your state.

 

How long does a Power of Attorney last?

A Power of Attorney only lasts as long as you have the capacity to handle your own affairs. For example, if you create a financial Power of Attorney that names your son as your personal representative, but later dementia causes you to become unable to handle your affairs, the Power of Attorney becomes invalid.

 

If you would like your personal representative to maintain the ability to handle your affairs in the event that you are no longer able to, you need to create a Durable Power of Attorney. A Durable Power of Attorney is the same as a regular Power of Attorney, except that it remains in effect even after you become unable to handle your own affairs.

 

Can I revoke my Power of Attorney?

You can terminate your Power of Attorney at any time as long as you still have the capacity to do so. If you want to revoke your Power of Attorney, you should consult with a legal professional as the steps for revocation are different in each state.

 

Do I really need a Power of Attorney?

Yes! You may think that in the event you become incapacitated your spouse or children will automatically be able to make medical and financial decisions on your behalf.

 

However, the reality is that without a Power of Attorney, someone will have to go to court to have a person appointed to handle your financial and medical affairs. Going to court is costly and time consuming; and when you become incapacitated, sometimes very important decisions need to be made immediately.

 

It is very simple and relatively inexpensive to have a legal professional create a Power of Attorney for you, and it can save your family a lot of problems down the road in the event that you become incapacitated.

 

Unexpected events (for example, motor vehicle accidents) happen frequently in today's world. Even newlyweds should consider creating a Power of Attorney in the event that they become incapacitated by an unforeseen event.

 

I want to create a Power of Attorney. Who do I call?

Contact an attorney licensed in the state you live in, as each state has different rules regarding Power of Attorney documents.

 

If you have any questions about Power of Attorney documents generally, or if you would like to create a Power of Attorney in CT or MA, please contact me at 413-746-4400 or at nle@dennerpellegrino.com.