What is a Power of Attorney?
Power of attorney’s are legal documents governed by state law. They appoint another person general or specific powers to act on the principal’s behalf. In almost all situations, power of attorney’s are needed if the principal becomes incompetent.
Durable Power of Attorney - powers are effective even if the principal becomes incompetent or incapacitated either temporarily or permanently. For some elders, durable a power of attorney may avoid court supervision.
A power of attorney can only be executed when the principal has the legal capacity. Capacity is governed by state law and different for each type of document executed. You may want to obtain a medical or a GCM’s evaluation when capacity may be an issue.
The individual(s) appointed should be trustworthy, proficient and reliable. Alternate appointment should be considered if the primary is unable or unwilling to perform.
In estate planning, you may want to give the attorney-in-fact the authority to make gifts or set up trusts.
Regarding the effectiveness of the power of attorney, many financial institutions have their own rules as to when they will accept a valid power of attorney such as date executed, and out of state appointments.
Power of attorney’s are legal documents governed by state law. They appoint another person general or specific powers to act on the principal’s behalf. In almost all situations, power of attorney’s are needed if the principal becomes incompetent.
Durable Power of Attorney - powers are effective even if the principal becomes incompetent or incapacitated either temporarily or permanently. For some elders, durable a power of attorney may avoid court supervision.
A power of attorney can only be executed when the principal has the legal capacity. Capacity is governed by state law and different for each type of document executed. You may want to obtain a medical or a GCM’s evaluation when capacity may be an issue.
The individual(s) appointed should be trustworthy, proficient and reliable. Alternate appointment should be considered if the primary is unable or unwilling to perform.
In estate planning, you may want to give the attorney-in-fact the authority to make gifts or set up trusts.
Regarding the effectiveness of the power of attorney, many financial institutions have their own rules as to when they will accept a valid power of attorney such as date executed, and out of state appointments.
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