What Is A Power Of Attorney?

A Power of Attorney is a document by which you appoint someone else (your “attorney-in-fact,” or “Agent”) to make decisions for yourself or with respect to your assets in the event you are unavailable or unable to do so. Your Agent can help you when you need it most.

You can appoint any competent adult person, such as your spouse, a relative, or a friend. You may choose an alternate agent to act in case your first choice is unable or unwilling to act as your agent. Or, you can give your agent the power to choose a successor.

In every case, your agent must act in your best interest and for your welfare. And, generally, your agent will not be paid for their services. The power of attorney is for your benefit, not the agent’s.

A Financial Power Of Attorney

A general power of attorney gives your agent the power to manage your financial affairs the same as you would be able to do personally.

Thus, your agent would typically be able to

   »»   Lease, maintain and improve property
   »»   Buy and sell property
   »»   Borrow money and grant security interests
   »»   Conduct normal banking transactions
   »»   File and sign tax returns and reports
   »»   Open safe deposit boxes
   »»   Vote any stock interest you hold
   »»   Apply for government benefits
   »»   Exercise rights over insurance policies
   »»   Transfer assets into trusts you create
   »»   Hire agents or professional advisors

A financial power of attorney can be made effective either immediately when it is signed by you, or only when you become disabled as determined by your doctor.

A financial power of attorney is also usually “durable,” which means that it will continue to be effective even after you become disabled or incapacitated. However, your agent’s power will terminate upon your death.

Health Care Power Of Attorney

A health care power of attorney names someone to be your agent, health care representative, health care proxy, or patient advocate, that is, the person who can make decisions about your medical treatment and health care in the event you become unable to participate in medical treatment decisions.

Typically, your patient advocate would be able to:

   »»   Provide for residential care
   »»   Have access to your medical records
   »»   Employ health care personnel
   »»   Give or withhold consent to treatment
   »»   Refuse treatment contrary to your wishes
   »»   Release physicians, etc. from liability
   »»   Make anatomical gifts upon your death
   »»   Provide for pain relief therapies

Your agent may need to sign a statement accepting that responsibility according to state law.

You may also want to leave specific instructions on the level of care you want to receive. For example, you may want to receive the maximum possible care and have your life prolonged as long as possible.

Alternatively, you may want to authorize the withholding of life-sustaining treatment if you are in a coma or a “persistent vegetative state.” You may authorize this action even if it results in bringing about your death more quickly.

You may even refuse treatment in the event of an incurable condition which, although it is not terminal, causes you to experience a severe and progressive deterioration of your physical or mental condition and loss of capacities.

The exact choices for end-of life care are determined by state law. Which option(s) you choose is up to you. Get advice from people you trust and consider the options carefully.

Other Considerations

Because you are putting your affairs, and possibly your life, in someone else’s hands, be sure to choose an agent  whom you can trust completely to act in your best interests.

Also, any power of attorney you make can be revoked or amended during your lifetime. That way, you can revise your plans as your needs change or become more definite.

Is A Power Of Attorney For Me?

You may, in fact, need more than one power of attorney.

If you are concerned about your possible inability to manage your financial and business affairs because of disability or incapacity, now or in the future, you should consider having a Financial Power of Attorney.

If you are concerned about your possible inability to make decisions concerning your medical treatment or health care due to illness, accident or injury, you should consider having a Health Care Power of Attorney.

A Power of Attorney is a good way to provide for your financial and medical well-being in the event something should happen to you. In any event, a Power of Attorney is something you shouldn’t forget to consider when planning for your future.