The Importance of a Power of Attorney: How Can It Help You in a Crisis?
Given the current public health crisis, many individuals are considering drafting a trust or will, but having a suitable power of attorney is equally critical to your estate plan. The questions and answers below illustrate the functioning and usefulness of a power of attorney.
What exactly is a power of attorney?
A power of attorney (POA) is a legal instrument that authorizes another person, your “agent,” to act on your behalf in financial matters. The POA lets you specify which powers you want your agent to have and which you don’t. Your agent may do it on your behalf if you get ill and cannot manage your financial matters.
Which agent should I hire?
People usually choose their spouse, a trustworthy family member, or a friend. If your first agent is unavailable, you may pick a replacement. You may even select more than one person to perform at the exact moment; however, you must decide whether they must act together or separately.
What is the significance of having a POA?
If your POA is “durable,” it will enable your agent to manage your affairs if you become incapacitated due to an accident, sickness, or other reason. Without a POA, a court would have to appoint someone as a Guardian of your property, which may be a complicated and controversial procedure.
Can I revoke my POA?
POAs may be revoked at any moment. You should obtain legal counsel to make your revocation effective since a financial institution may still honor your POA if it has yet to be properly notified of its revocation.
Is it necessary for my agent to sign the Power of Attorney?
Yes, for the agent to act, they must also sign the POA. The agent’s signature confirms that they realize they must behave in your best interests.
I have a power of attorney from 10 years agoâ – Is it still applicable?
The POA is still legal today as long as it was correctly completed on a valid form. However, it would help if you considered creating a new POA since the statutory form changed in September 2010, and financial institutions more often accept the new form.
Can someone go into my agent’s actions?
You may appoint a “monitor” for your agent who can oversee their conduct. If the monitor feels the agent has done anything improper, they may file a lawsuit against the agent.
What if I don’t have a power of attorney?
If you don’t have a POA, the attorneys at Paducah Family Lawyers would be happy to assist you in putting one in place. You may contact Attorney Jennifer Mills Peek PLLC at https://paducahfamilylaw.com/contact-us/ or (270) 558-4790
