Introduction
Power of attorney (POA) is a legal document that gives someone else the legal authority to act on your behalf in a variety of situations. This document can be used for both financial and medical decisions, depending on the type of POA you create. There are three main types of POAs: general, special, and durable. It’s important to understand the differences between these types so you can choose the one that best suits your needs.
Understand the Basics of Power of Attorney
Before you can get power of attorney, it’s important to understand the basics of what it is and how it works.
What is a POA?
A power of attorney is a legal document that gives someone (known as the “agent”) the legal authority to act on your behalf in a variety of situations. The person granting the POA is known as the “principal.” A POA can be used for both financial and medical decisions, depending on the type of POA you create.
Who Can Grant a POA?
Any adult with mental capacity can grant a POA. Generally speaking, this means that the person must be over 18 years old and have the ability to understand the implications of granting a POA.
What Does a POA Do?
A POA gives the agent the legal authority to make decisions on behalf of the principal. Depending on the type of POA, the agent may be able to make financial decisions, such as accessing bank accounts or signing contracts, or medical decisions, such as choosing a doctor or approving treatments.
Decide Which Type of Power of Attorney You Need
Once you understand the basics of POA, you need to decide which type of POA you need. There are three main types of POAs: general, special, and durable.
General POA
A general POA gives the agent broad powers to act on behalf of the principal. This type of POA is often used for short-term transactions, such as buying or selling property.
Special POA
A special POA is more limited in scope than a general POA. This type of POA gives the agent the authority to carry out specific tasks, such as signing documents or making investments.
Durable POA
A durable POA is designed to remain valid even if the principal becomes incapacitated or mentally impaired. This type of POA gives the agent the authority to make decisions about the principal’s health care, finances, and other matters.
Choose a Person to Act as Your Agent
Once you’ve decided which type of POA you need, you need to choose a person to act as your agent. This is a very important decision, as it’s critical to choose someone you trust to act in your best interests.
Considerations When Choosing an Agent
When choosing an agent, there are a few things to consider. First, you want to make sure the person is reliable and trustworthy. You should also consider whether they have the knowledge and experience necessary to make decisions on your behalf. Finally, you need to make sure the person is available and willing to act as your agent.
Duties and Responsibilities of the Agent
The agent’s duties and responsibilities will depend on the type of POA you create. Generally speaking, the agent is responsible for making decisions in the best interests of the principal and following the instructions outlined in the POA document.
Draft an Appropriate Power of Attorney Document
Once you’ve chosen an agent, you need to draft an appropriate POA document. This document should be carefully crafted to ensure it meets all legal requirements and is tailored to your specific needs.
Requirements for Creating a Valid POA
In order to create a valid POA, the document must meet certain legal requirements. These requirements vary by state, but generally speaking, the document must include the full names of both the principal and the agent, a clear description of the agent’s powers, and the signatures of both parties. Additionally, the document must be signed in front of witnesses and notarized.
Information to Include in the Document
In addition to the basic legal requirements, the POA document should include specific information about the agent’s powers and duties. This includes the type of decisions the agent is authorized to make, the time period during which the POA is valid, and any restrictions or limitations on the agent’s authority.
Sign the Document in Front of Witnesses
Once the POA document is drafted, both the principal and the agent must sign the document in front of two witnesses. The witnesses must be adults (over the age of 18) who are not related to either the principal or the agent.
Who Qualifies as a Witness?
Generally speaking, any adult who is not related to either the principal or the agent can serve as a witness. However, some states may require that the witnesses be unrelated to each other as well.
Notarizing the Document
The POA document should also be notarized by a public notary. A notary is a licensed professional who can verify the identities of those signing the document and the validity of their signatures. Notarization is important for ensuring that the document is legally binding.
File the Document with the Appropriate Court or Agency
Once the POA document is signed and notarized, it must be filed with the appropriate court or agency. This is important for ensuring that the document is legally valid.
Filing Requirements
The filing requirements vary by state and type of POA. Generally speaking, the document must be submitted to the appropriate court or agency within a certain amount of time after it has been signed.
Documentation Needed
When filing the POA document, you will need to provide certain documentation, such as proof of identity for both the principal and the agent. You may also need to provide other documents, such as a copy of the principal’s death certificate if the POA is being created due to the principal’s death.
Conclusion
Getting power of attorney is an important process that requires careful consideration. It’s important to understand the basics of POA, decide which type of POA you need, choose an appropriate agent, draft an appropriate document, and file the document with the appropriate court or agency. Following these steps will help ensure that your POA is legally valid and that your wishes are carried out.
(Note: Is this article not meeting your expectations? Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)