What Is A Power Of Attorney And Do You Need One?
A power of attorney is a common document included in an estate plan, typically in conjunction with a health care proxy and will or trust.
In layman’s terms, it’s a document that “clones” you.
As an adult human you have the power to do many things on your own. You can buy a car, give a gift to a friend, sell your house, open bank accounts in your name, etc etc.
If you ever wanted to give someone else the power to do these things for you, you can sign a power of attorney.
It’s a document that spells out the jobs and tasks and abilities that you allow another person to do for you.
It comes up in law a lot. For example, if your lawyer needs to get your private medical records after a car accident in a lawsuit, the lawyer may have you sign a limited power of attorney that gives the lawyer the authority to request your medical records. Without authority to do so, the hospital would not give them to anyone but you.
There are other specific instances when a lawyer or a job or a family member may want you to sign one.
Generally though, people get powers of attorney to account for the possibility of future incapacity.
Why Most People Should Have One
If you ever, god forbid, become incapacitated or experience dementia, you won’t be able to handle simple things like your bills or other day-to-day tasks in your life.
You won’t be able to apply for certain benefits or make mortgage payments, or engage in other things that you would be if you were alert and of sound mind.
For this reason, people designate a power of attorney NOW so that LATER if they ever get dementia or become incapacitated their affairs will be handled.
Without a power of attorney, loved ones would need to go through the process of appointing a conservator, which can take a lot of time and money and requires ongoing court supervision.
If you need a will, trust, power of attorney, or other other estate planning needs – call or email me
(860) 913 0210