Everything you need to know about a power attorney. When and why you would need a power attorney. Plus a tip from Affordable Legal! Power of Attorney: is a legal document appointing and providing another adult legal authority to act on your behalf. This document must be signed, notarized and will require 1 or more witness signatures.
Parties to a POA are known as:
Principal- Individual the POA is for.
Agent- Individual given the authority to act on the principles behalf.
A Power of Attorney or “POA” is a living document, what does that mean? This means that a POA is only good until revoked in writing or until the principal dies. Once the principal dies the POA is null and void and this is when a Will or Trust will take over and determine who will make decisions on behalf of the deceased estate and affairs. If the individual does not have a Will or trust family members may have to apply to the Court via probate for an order authorizing them to make decisions on behalf of the deceased estate.
Most common power of attorney’s:
- General Durable
- General Regular
- Special
- Medical
- Financial
- Parental
General Durable Power of Attorney
A general POA authorizes the agent appointed with complete and full authority to act on behalf of the principal including personal, financial and a wide variety of legal affairs. A general durable POA is valid until it is revoked in writing or when the principal dies.
General Regular Power of Attorney
A general regular POA provides the same authority as a General Durable POA however this POA has an end or expiration date. An end or expiration date means the agent is given authority for a set amount of time. The date of expiration will be included and outlined in the POA.
Special Power Of Attorney
A special POA is used when a principal wants to give the agent limited authority and authority for specific situations only. This POA also can expire when revoked in writing or when the primary dies(Durable) or it can be given an expiration date (Regular).
Medical Power of Attorney
A Medical or Health Care POA provides another agent the authority to make medical and health care decisions on behalf of the primary. What is unique about a Medical POA is that the primary has the ability to outline how they want decisions to be made in advance, for example in case of a medical emergency you would like to be resuscitated? or, in the event of your passing would you like to be cremated or buried. This POA still leaves a lot of the decision making to the primary and provides the agent with the authority to carry out the primary’s wishes as outlined.
Financial Power of Attorney
A financial POA can also fall under the category of Special POA. This POA will authorize the agent to act on the primary’s behalf for financial affairs only. A financial POA can also be a POA drafted and provided by your bank or financial institution and is required by that institution for a person to act on your behalf as it relates to funds and assets handled by the institution. Many major banks require a POA that they have drafted and will not accept a General or Special POA drafted by another party.
Tip: always check with your bank or financial institution to see what they will require and or accept.
Parental Power of Attorney
A parental POA gives another individual the authority to act on behalf of the primary in regards to their child or children named in the POA. In Arizona a parental POA is only good for 6 months from its start date. The only exception to the 6 month expiration date made for a parental POA is only made for active members of the military.
When should I have a Power of Attorney Prepared?
A POA is one of the most requested legal documents. POA’s are often requested after a family member or close friend has had a medical emergency and is unable or needs assistance from a 3rd party to conduct their legal or financial affairs. The issue with the aforementioned timing is that when a person has an unfortunate medical emergency they are often unable or are rendered unable to make important legal decisions, and therefore unable to legally appoint someone to become a power of attorney on their behalf.
POA’s such as a Durable and Medical POA’s should be prepared as soon as possible and as a part of your estate planning. Emergencies are just that last minute and unpredictable the better prepared you are the easier these situations are for you and your loved ones.
POA’s are especially important in long term relationships where individuals have decided that they are not ready or do not want to be married. Unmarried partners have no medical or specific authority to act on behalf of their significant other in the case of a medical emergency regardless of the length of their relationship.
In certain cases a POA may be required even to act for a spouse or parent. Once your children become 18 years of age you no longer have authority to act on their behalf if you have not been appointed a guardian or do not have a POA.
Preparation is Key:
Preparation in case of an emergency will always light the load of the responsibility love ones face. The best way to do this is to take the time to think about who you trust and how you would like your affairs to be handled in the unfortunate event you can’t handle them yourself. Once you have answered those important questions you can choose the best legal professional to prepare them for you and store them in a safe place and let your family know where to find them.
Affordable Legal Tip:
POA’s are the perfect type of document to have a LPD or Legal document preparer prepare for you. Attorney’s are not required to have these forms prepared and by using a LPD to prepare one for you are sure to save yourself some money.
Melissa Medina is a certified legal document preparer and independent paralegal with 17 years of experience in the field. She has been helping communities in the valley through legal issues in family law, personal injury, estate planning and more since 2020.
0 Comments