An individual may get power of attorney for any type in five (5) easy steps: Step 1 – Choose an Agent Select and ask someone that you trust if they would like to be your “Agent” or “Attorney-in-Fact”. Especially for a durable power of attorney, the agent selected should be someone you have trusted most of your life.
Full Answer
Technically, you don't need a lawyer to get a power of attorney agreement created. That may lead you to ask, "Where can I get power of attorney forms to fill out?" The answer is pretty simple: You and your parent can get self-guided legal services through a website like LegalZoom or find free power of attorney forms online.
One option is to have an open, honest discussion with the person. Emphasize the importance of having a financial or health care power of attorney and the negative consequences of not having any powers of attorney in place.
(So if your parent lacks the capacity to grant you power of attorney, you'll need to consider the alternative, more complex legal option: adult guardianship .) A POA document is generally a written agreement between two people: (1) the principal (sometimes called the grantor) and (2) the agent (sometimes called the attorney-in-fact).
In a power of attorney, you name someone as your attorney-in-fact (or agent) to make financial decisions for you. The power gives your agent control over any assets held in your name alone. If a bank account is owned in your name alone, your attorney-in-fact will have access to it.
Broadly speaking, you get power of attorney for a parent by having him or her name you as the agent in a POA document that he or she has signed while sound of mind. However, the process is rarely as simple as it seems, especially when it comes to ensuring that your power of attorney will be recognized by third parties. Things can also become more complicated if you're trying to get power of attorney for a sick parent who is already suffering from dementia or another terminal illness or incurable condition that affects his or her ability to communicate or make reasoned decisions.
The duty of a power of attorney agent is to always act in the best interests of the principal.
Depending on the particular agreement, a power of attorney covers a broad or narrow set of responsibilities, usually related to financial and/or medical and caregiving matters.
So, what is a durable power of attorney? It's an agreement that goes into effect right away and gives an agent the authority to carry out his or her specified responsibilities even after the principal becomes incapacitated. Essentially, the difference between a "general power of attorney" and a "durable power of attorney" is that a general POA terminates when the principal is deemed to lack capacity, whereas a durable POA stays valid beyond that point. In most cases, a durable power of attorney covers financial responsibilities, but some people also use it to cover certain duties related to caregiving or healthcare.
A POA document is generally a written agreement between two people: (1) the principal (sometimes called the grantor) and (2) the agent (sometimes called the attorney-in-fact). The agent is the person appointed to act on behalf of the principal. So your parent (the principal) can grant you (the agent) certain powers of attorney.
For example, you sign as a power of attorney agent by using a formula like "Your Parent's Name, by Your Name under POA." (If your name was John Doe and your parent's name was Jane Doe, your signature would be "Jane Doe, by John Doe under POA.")
Also known as special power of attorney, this type of POA grants an agent the authority to handle a very specific situation on the principal's behalf. For example, your parent may grant you limited POA to represent him or her in the sale of a particular property or to manage his or her transition to a nursing home or assisted living facility. Your authority as the agent ends as soon as you've successfully completed the defined activity or reached the agreement's specified expiration date. And your powers do not extend to anything other than what is specified in the document.
I agree with both of my colleagues. Sure, it's possible; but it's a very bad idea. Further, if a POA is all you need, it would not cost too much to have an attorney draft the document for you. I've seen "homemade" POAs from online forms that are not worth the paper they're printed on.
It is possible, but not wise. Many companies will not honor POA forms not drafted by an attorney. Michigan just recently changed its POA statute, so any forms that are available online or through other sources may no longer be up to date, in Michigan. These forms are not expensive to have an attorney draft.
Step 1 – Choose an Agent. Select and ask someone that you trust if they would like to be your “Agent” or “Attorney-in-Fact”. Especially for a durable power of attorney, the agent selected should be someone you have trusted most of your life.
Accidents happen. Any person who should become incapacitated through an accident or illness would need to make arrangements beforehand for their financial and medial affairs.
Revocation Power of Attorney – To cancel or void a power of attorney document.
General ($) Power of Attorney – Grants identical financial powers as the durable version. Although, the general power of attorney is no longer valid if the principal becomes mentally incompetent.
An individual may get power of attorney for any type in five (5) easy steps:
In most cases, a Notary Public will need to be used or Two (2) Witnesses. STATE. DURABLE.
For other nominations, a principal may assign power of attorney under a special circumstance with the limited form. In addition, if the principal is looking to have someone only handle personal and business filings the tax power of attorney should be used.
In a power of attorney, you name someone as your attorney-in-fact (or agent) to make financial decisions for you. The power gives your agent control over any assets held in your name alone. If a bank account is owned in your name alone, your attorney-in-fact will have access to it.
Power of attorney dies with you. Once you pass away, the document is no longer valid and your will then controls what happens to your assets. Fund your revocable trust. If you fund your revocable trust during your lifetime, you may not need to use your power of attorney although you should still have one just in case.
Consider your options. There are two types of powers of attorney. A durable power of attorney is effective when you sign it and survives your incapacity. A springing power of attorney springs into effect when you are incapacitated. A springing power of attorney seems more attractive to most people, but it is actually harder to use. Your agent will need to convince the bank that you are incapacitated and, even though the document spells out how to do that, your local bank branch often does not want to make that determination. Translation: your lawyer often needs to get involved. For that reason, most attorneys advise you to execute a durable power of attorney. The attorney will often hold the original power of attorney until it is needed as an extra protection.
Name an alternate. If your named agent dies before you or is incapacitated, you want to have a back-up who can act. Also, consider nominating a guardian and conservator in your power of attorney in case one is needed down the road. Read the document. This seems obvious, but clients often do not read their documents.
The unfortunate answer is “yes. ”. Since he will have access to your financial accounts, he can access your funds and use them for his own benefit. The agent does have a fiduciary duty to use the assets only for your benefit or as you direct in the document.
Depending on the language of the power of attorney, your agent may be able to change the ownership of your bank accounts or change your beneficiary designations. This is a common scenario in second marriages.
The power of two. Consider naming two agents to act together if your state allows for it . While having two people serve can be cumbersome, it often is worth the extra effort to have an extra set of eyes on the use of the power of attorney. This can substantially reduce your risk and ensure your assets go to the people you’ve designated in your will.
You create a Power of Attorney partly to protect yourself, but mainly to make life operationally straightforward for the people you assume will take responsibility for you once you're too gaga to look after yourself. By which time you won't really know or care what the heck is going on anyway.
If you haven't got one and you lose your marbles, it will just mean extra paperwork for whoever is responsible for you - and that paperwork, plus funding professional administration of it, may cost your estate dear.
You really don't need a POA, they can get dirty and start taking advantage of who they're taking care of, you don't need this kind of hassle. Again, you don't need a POA when there so much you can do for yourself while you still can.
You may appoint a private fiduciary; I have considered a friend who you can pass the fiduciary examination and is bondable as an alternative (the bond is a safety net). Just make sure you don't appoint anyone struggling with finances; or anyone who just doesn't care.
Putting someone else on your bank account is actually very risky because you don't know that they won't start taking advantage and stealing from you. Another risk is if you put someone else on your bank account, they may take too much money and bills or other necessary expenses may not get paid.
Your lawyer can do it -- I suggest the lawyer (aka attorney) who drew up your will.
But your POA won't stop you getting dementia, if you're going to. So it's not like you'll be sorry you didn't do it. I have the great good fortune to have known a fully qualified Chartered Accountant since his birth, and to know him to be a young man of unimpeachable integrity.
If you don’t have a power of attorney for health care, your end-of-life care preferences may not be known or may not be carried out. This can place a heavy burden on your loved ones since they may be forced to make tough decisions about your care at a time when they are already emotionally drained.
A power of attorney for health care or medical power of attorney gives your agent authority to make medical decisions for you if you become unable to make medical decisions for yourself. Typically, your power of attorney for health care lists your preferences for medical care and end-of-life care, such as artificial respiration and artificially-supplied nutrition and hydration. If you become incapacitated, perhaps because of dementia or Alzheimer’s disease, your agent can carry out your wishes.#N#Read More: Durable Power of Attorney for Health
If you suddenly became unable to handle your own finances or make your own health care choices, a person you appointed in a power of attorney -- your agent -- could make decisions for you and take care of your financial affairs.
You may also choose to make your power of attorney durable, meaning it remains in effect if you become incapacitated. If you only want your agent to have authority if you become incapacitated -- and not before -- you can give your agent a "springing" power of attorney that will only become effective if you become incapacitated.
In the case of financial estate management, the absence of a durable power of attorney can lead to time consuming and expensive remedies for family members if proper planning has not been completed. Generally, if a person has not assigned an agent to act on their behalf, control of financial management reverts to the state.
Normally, people form a power of attorney in advance of any anticipated physical problems that would prevent them from acting in their own best interests both financially and medically. A power of attorney allows them to appoint an agent to manage their affairs when they become unable to do so.
A power of attorney template or POA form can be used to nominate a power of attorney to represent an individual and their affairs in several different areas should they become incapacitated.
A durable power of attorney, while designed as a beneficial tool for a person in need of assistance with financial or medical decisions, is also an invaluable instrument for family members and relatives. It provides for a definite decision making process and allows a trusted person to make those decisions rather than someone the court appoints or a medical staff unfamiliar with the patient’s wishes. It is a vital estate planning tool that every person should consider completing prior to actually needing one.
In the event of medical incapacitation, usually a family member will be called upon to make any important decisions in the absence of a power of attorney. In this situation, difficulties can arise if there is more than one family member and they differ on the course of medical action. Even more difficulties can arise if there are no family members ...
A legal term, power of attorney grants an individual known as the agent the right to act for another person, referred to as the principal. Depending on the case, a principal may appoint an agent to make decisions about their finances, legal rights, healthcare needs, or all of the above. The rights granted to an agent may be broad (such as handling all business transactions) or narrow (like selling a home).
If you don’t currently have a will, you might want to consider speaking to an estate planning lawyer about how best to convey your final wishes to the court. Not only does making a will ensure that your property will go to the beneficiaries and heirs you choose, but it also saves your friends and loved ones from the stress of making decisions about your estate when they’re grieving. Here are some of the reasons that everyone needs a will:
Power of attorney is only valid when the principal is still alive. After an individual passes, their estate representative or executor will be responsible for legal decision-making and distributing property to heirs. If the decedent failed to appoint an executor, the court will appoint one for them. In most cases, spouses and close family members are assigned the task of serving as a will’s executor.
If the decedent failed to appoint an executor, the court will appoint one for them. In most cases, spouses and close family members are assigned the task of serving as a will’s executor.
Note that your estate will still need to pay off creditors and settle any outstanding debts or tax bills before the executor can make distributions. By choosing an executor yourself, you also save friends and loved ones from having to make this decision after you’re no longer there.
For unmarried individuals, property and money pass to children and then to other relatives, including grandchildren, parents, grandparents, and siblings. In rare cases, someone may die who doesn’t have a will or living family members to inherit.
By making a will, you can determine which property and belongings should go to your spouse, children, family, friends, and even pets. Additionally, you can request that sums of money be given to various charitable organizations or groups.
One option is to have an open, honest discussion with the person. Emphasize the importance of having a financial or health care power of attorney and the negative consequences of not having any powers of attorney in place.
Mentally competent persons of at least 18 years of age should have a will, financial power of attorney, and health care power of attorney in place. It’s also a good idea to consider completing a living will.
It’s also a good idea to consider completing a living will.
If you’re caring for someone with dementia, you may face a legal catch-22 you hadn’t anticipated: they can’t – or won’t – sign a power of attorney. That’s the legal document that allows someone else to make critical medical and financial decisions on their behalf when they’re not able to.