We all must make decisions about health, money, and family matters. When you cannot do so yourself, you may use a Power of Attorney (POA) to assign those responsibilities to a trusted individual. That individual becomes your agent and, based on the powers you grant them, performs those duties on your behalf.
Although creating a POA before you need it may feel unnecessary, it is a protection from the unpredictable things in life. Waiting until a health crisis strikes may complicate matters as the court may establish guardianship and pick a representative against your will. POAs are also helpful for estate planning because, unlike a will, they become active during your lifetime, so you can tweak and adapt them until they meet your needs.
A Power of Attorney places the agent under a fiduciary duty to act in the author’s best interest and restricts how much control they have. They must follow your instructions and stick to the guidelines. However, the author must choose a trustworthy agent to prevent legal breaches and court battles.
This article discusses the types of POAs, who needs them, and how to create yours.
Who Needs a Power of Attorney
Absence, illness, and a busy schedule are reasons you may want to delegate some of your authority to another person. Below are situations when you require a POA.
- You are incapacitated due to illness.
- You are out of the country on a military or another assignment.
- You want to delegate some duties from your packed schedule
- Your age and mobility limit how much you can accomplish.
Preparing a POA ensures you leave essential matters in the hands of someone you trust instead of letting the court decide for you. Older adults need to set up a POA so that they don’t end up with guardianship/conservatorship arrangements that don’t serve them.
A well-crafted POA also reduces the chances of family conflicts regarding who should take over your affairs and sets up a legal guarantee that your wishes will be followed.
There are several types of POAs. Your reason for creating the document determines the type of POA, when it becomes effective, and how long it lasts.
Types of POA
POAs are easy to create. However, granting another person authority to act on your behalf is a serious decision that deserves careful thought. You’ll need to decide whether you want your agent to assume their role immediately or wait until you are unavailable or unable to act. You should also determine how much power you give them.
You may need one of the following POAs:
General Power of Attorney
You may use a General POA in several situations. For example, it can authorize the agent to act for you in financial, health, and legal matters. A general POA can be durable or non-durable.
Durable Power of Attorney
A durable power of attorney stays active after you become incapacitated. It can be a helpful tool in estate planning. It allows your agent to retain the authority to make financial and investment decisions if a medical condition limits you. You can also use a durable power of attorney for medical decisions.
Medical Power of Attorney
If you are unconscious or incapacitated in another way, you need someone to speak for you. Your agent can evaluate recommended medications and procedures and decide which ones to accept. Their decision is based on your wishes. Therefore, you should express those wishes beforehand to keep your representative from contradicting them.
You can also use a medical POA to determine your end-of-life care and any preferred doctors and hospitals.
Springing Power of Attorney
Powers of attorney can become active whenever you choose. They may grant your agent authority upon signing, or you may require that a specific event triggers them to come into effect. POAs that depend on a particular occurrence are referred to as “springing” because the agent’s power “springs” into effect when the required condition is met. You can also set the POA to become active on a specific date.
Financial Power of Attorney
You can assign a trusted individual to handle your banking transactions and other financial matters, such as taxes. The agent will only have as much authority as you give them.
How to Write a Power of Attorney
Preparation is key when creating a power of attorney. Follow the steps below to ensure you capture every necessary detail.
- Pick a suitable agent: It can be tempting to appoint a friend or close family member as an agent. However, more is required than familial relationships. You need someone trustworthy and responsible. They should also be willing and ready to act on your behalf without feeling coerced.
- Inform the agent about your wishes and their role: It’s a good idea to speak to a prospective agent before finalizing your decision. Ensure they accept their role, understand your wishes, and are willing to fulfill them.
- Determine how much power you wish to grant your agent: After determining the type of POA, you should also consider how much authority to delegate. For example, you may use a financial POA to grant limited authority. The agent may have permission to pay bills or, make bank deposits, or both.
- Research your state laws: You must complete the form according to your state’s laws. Consider whether the law requires you to notarize the document and how many, if any, witnesses are necessary.
- Draft your POA: You can use POA forms provided by your state government or a tailored template that best suits your needs. Remember to follow all regulations during this stage. For example, if witnesses are necessary, ensure you sign the document in their presence.
- Make copies of the completed document: Your agent should have a copy of the POA. You can also give copies to your doctor, banks, and other relevant third parties.
- Keep the document up-to-date: Update the POA as your needs, situation, and wishes change. Such updates ensure that the provision serves you rather than becoming a burden.
Like many legal documents, a POA lasts only as long as you want. Additionally, you can revoke a POA that no longer serves you or one whose agent wants out of their appointment.
Article by
Dena StandleySenior Writer | Experienced Paralegal | 79 Articles
Dena Standley is an experienced paralegal based in Houston, Texas and has over a decade of experience working as a paralegal with trial lawyers and law firms. She is passionate about making legal processes more accessible and helping people understand and navigate complex legal matters with confidence.
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