What Can You Do With a Power of Attorney?

A power of attorney form is a legal form that willneeds theirs finances handled while their traveling
allow someone to appoint another person to legally actabroad.
on his or her behalf. The person who creates theA general power of attorney authorizes an agent to
POA (power of attorney) is called the principal and theact in all of the principals business or financial affairs.
person appointed to act on the principal's behalf isHowever, when the agent becomes incapacitated,
called the agent.mentally or physically, the powers granted to the agent
One need a POA fills for many people is their need toare automatically revoked. Unfortunately, this is usually
help their aging parents with their financial affairs. Agingthe time when a power of attorney is needed most.
is a process we all have to go through but it can beSome states, like New Jersey, have laws that allow
made a much easier process with a POA. When wethe use of a 'springing' POA. Other states, like New
become physically or mentally debilitated to a pointYork and Connecticut, don't allow their locals to use a
where we don't want or can't handle our finances it'sspringing POA. They call them springing power of
nice to be able to appoint a trusted child or familyattorney because they 'spring' into action when the
member as our agent. With a 'durable power ofprincipal becomes incapacitated. Sometimes they
attorney' we can give them the power to withdrawpresent problems though because the hospital may
money from our bank account to pay bills anddemand things like a court order then the court may
manage funds even when we become mentally ordemand direct evidence of the incapacity, such as a
physically incapacitated. A general POA is no longersigned letter from the doctor. That's why most
effective when the principal is incapacitated, that's whylawyers, like David P. Callahan, a lawyer with Whitman
they created the durable POA and it's now recognized& Ransom, say instead of a springing POA use a
in all fifty states.durable POA because "The durable power confers
Some people only realize they need a durable POAimmediate authority', then goes on to say 'it shall
during a sudden crisis, but most people draw one upsurvive incapacity."
along with an estate plan. Most lawyers, including JulianAnother use power of attorney are fulfilling is the ability
S. Bush, a senior estate partner with Shea & Gould,to allow the agent to make decisions about the extent
recommend everyone aged 60 or older should createand nature of the principal's medical treatment. Some
a durable power of attorney because "that is thepeople create a separate document for this, while
danger zone". He went on to say that it's equallyothers add them to the regular power of attorney in
advisable for younger clients but he has noticed theytheir estate plan along with other special provisions;
tend to resist the idea of sharing power over theirwhich might include giving the agent the power to sign
assets.tax returns or access a safe deposit box.
There are many different types of POA forms but allDisclaimer: This article has been written for information
of them are revocable. At any time you can revoke aand interest purposes only. The information contained
POA with a 'revocation of power of attorney'. Awithin this article is the opinion of the author only, and
limited power of attorney is used when someoneshould not be construed as legal advice or used to
wants to appoint an agent for a given time period ormake legal decisions. Consult an attorney in your area
for a specific task. A limited POA is usually used forif you're seeking legal advice.
things like real estate transactions or when someone