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