A POA is a legal arrangement where you authorize someone else to make decisions about your personal matters on your behalf.
This authorization is typically granted when you still have the legal capacity to make your own decisions.
The person you appoint, known as the attorney or substitute decision-maker, becomes responsible for managing either your personal care or financial affairs.
There are two main types of POA: one for handling financial matters and the other for managing personal care.
It empowers someone you trust to make important decisions regarding your finances or health care without requiring them to be a lawyer.
This person could be a family member or a close friend whom you trust to act in your best interests.
When to Consider Getting a Power of Attorney
- It’s advisable to have a POA in place regardless of age or financial situation.
- If something happens that affects your ability to make decisions, such as an accident or illness, you’ll need someone to make decisions on your behalf.
Types of Powers of Attorney
- Power of Attorney for Personal Care: Allows you to appoint someone to make decisions about your health, housing, and personal life if you become incapacitated.
- Power of Attorney for Personal Property: Lets you appoint someone to make financial decisions, such as paying bills and managing investments, if you’re unable to.
Requirements to Make a Power of Attorney
- You must be mentally capable.
- You need to be at least 18 years old for property POA and at least 16 years old for personal care POA.
Factors to Consider
- You can choose anyone you trust as your attorney, including family members, friends, lawyers, or accountants.
- It’s crucial to ensure the person you choose will act in your best interests and not misuse their power.
- Planning ahead can help avoid costly and unpleasant legal disputes in the future.
FAQs
Why Should I Have a Power of Attorney?
A Power of Attorney (POA) is a really important paper that can help take care of your things if you're not able to. It makes sure someone you trust can handle your money and personal stuff for you. Without one, your family might have to do a long and expensive court thing to be able to help you.
Do I Need a Lawyer to Make a Power of Attorney?
It's not a must, but it's a good idea. A lawyer can make sure everything's done right and that what's written down is what you want.
When Does a Power of Attorney Start Working?
It starts as soon as it's signed and someone sees it happen, unless there's something in the paper that says it starts later or needs some special thing to happen first.
Can I Change or Cancel a Power of Attorney?
Yes, you can. As long as you're able to make decisions, you can change or stop a Power of Attorney anytime you want.
How Long Does a Power of Attorney Stay Valid?
A Power of Attorney stays valid for as long as the person who made it says in the paper. It can also end if they change it or decide they don't want it anymore.
What Happens if the grantor becomes incapacitated and cannot decide Anymore?
If the person who made the Power of Attorney can't decide anymore and there's no Power of Attorney set up, it might need to go to court to appoint someone to manage their affairs. This process can be lengthy and expensive, so having a Power of Attorney beforehand is a good idea.
Note: “The information herein is provided for informational purposes only and should not be construed as legal advice. Read our complete Legal Disclaimer on Website”
