About Power of Attorney
In designating an "attorney-in-fact" or an "agent" you are authorizing that individual to act on your behalf should you be unreachable (out of the state or country) or incapacitated. Anyone who travels extensively---at home or abroad---or who is physically or mentally unable to make competent and informed decisions should appoint a power of attorney (POA). Anything your POA does---as specified in the power or attorney document---is legally binding.
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Types
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A power of attorney may have general or specific powers. A general POA is the most common and far-reaching. This type bestows on the "agent" the "power" to carry out nearly everything the designator can handle on their own, including conducting banking transactions, accessing safety deposit boxes, participating in real estate dealings (purchase or sell property), engaging in investment activities, buying insurance, filing state and federal tax returns and transferring resources into "living" or "revocable" trust funds.
Other types are a health care, durable or special power of attorney. Health care POAs have responsibilities similar to that of a health care proxy or "agent." Your designee has the "power" to make decisions regarding your care if you cannot make competent medical choices on your own. The "agent" is required to follow your directives when doing so. A durable power of attorney may be a general, health care or special POA with particular "durability" provisions. A "durability" clause permits an "agent" to remain your POA if you become disabled as a result of a medical condition or accident. A special POA has limited or restricted "powers" that involve certain actions, such as buying or selling a car or transporting household items.
Identification
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A power of attorney is not required to be an attorney. The individual, however, must be a minimum of 18 years old, mentally capable, have sound judgment and---most important---be trustworthy. When selecting a POA a relative or close friend should be your first consideration. Your designee will be responsible for acting on your behalf concerning financial and medical issues. It is important, therefore, to choose an individual who will not misuse their "power" and always act in your best interest. In most cases, powers of attorney only are designated for one year.
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Features
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Determining the "principal's" (the individual designating the POA) mental competency is required before a power of attorney document is considered legally binding. A person is deemed "competent" if they can comprehend the "powers" they are bestowing on their "agent" and the implications that are associated with having another person make decisions on your behalf. In cases where mental competency is questionable a physician should evaluate the "principal" and certify---in writing---that the individual fully understands the power of attorney document and the consequences that come with signing it.
Misconceptions
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A power of attorney is not irrevocable. Generally, the POA becomes null and void upon the death of either party or at the end of the specified timeframe. At any time, however, an individual can revoke their power of attorney. Notice must be served on the "agent" conveying your desire to rescind their "power." The change is effective immediately upon notification of the "agent" and anyone who may have come in contact with them in their capacity as POA. Prevent any further use of the "agent's" power by retrieving and purging all copies of the power of attorney documents. It also is important to publicly record the revocation of power.
Warning
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Always keep your signed and notarized power of attorney form in a safe, secure and handy location. Present your health care provider or physician and your lawyer with copies. A copy also should be included in your medical files and given to your spouse, health care proxy, family members and close friends.
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