A power of attorney is a legal document that permits a person to delegate another person or entity to act on his or her interests to manage their affairs. The person who forms the power of attorney is recognized as the principal and the person given the authority over the affairs is the attorney-in-fact. A power of attorney is in force only if the principal is alive, and only a principal who is mentally fit can authorize it.
A power of attorney and a Will should be part of everyone’s estate planning documents. There are many kinds of powers of attorney as well as many reasons to put one in place. You never know when the urgency may arise, and a power of attorney will be needed so some kinds of powers of attorney are a good idea to implement now. On the other hand, other types of powers of attorney may only be required if a certain state arises.
Many people think that as long as they have selected a durable power of attorney, they lose the authority over any decision-making and how their assets are managed. This is simply not the case and the power of attorney only takes over if you are no longer mentally competent enough to run your personal, legal, and financial affairs.
A power of attorney form can be used to choose a power of attorney to represent a person and their affairs in various areas if they ever become incapacitated.
Even though a power of attorney is still an important tool for handling the estate and affairs of incapacitated loved ones, it has become more than just that. It has also developed into a useful tool that enables individuals to give authorization to professionals with specialized skills. These professionals can serve and represent them in business, legal, and financial spheres that require a piece of particular knowledge and skill set that the individual might not have. This enables people to level the playing field when it comes to engaging with larger organizations that have paid professional staff committed to acting on their behalf.
If you would like to establish a power of attorney call Freilich Law. Michael Freilich has been writing the primary documents of estate planning for over 40 years. These include wills, trusts, living wills, living trusts, dying declarations, gifting, medical powers of attorney, financial powers of attorney, animal trusts and more. Call for a consultation to (410) 321-0040.