A power of attorney is a document that authorizes an individual to act on your behalf to the extent authorized in the power of attorney. When you execute a power of attorney, you appoint an individual as attorney-in-fact to manage your financial affairs. If you execute a durable power of attorney your attorney-in-fact can continue to manage your financial affairs after you incapacitated.
Your attorney-in-fact should have in their possession the original power of attorney. Quite often it is recommended that you give a conformed copy of the power of attorney to all of your alternate attorneys-in-fact to ensure that they are willing to act as an attorney-in-fact.
Generally, the power of attorney is either: (1) effective from the moment it is signed until the time of death or (2) effective only when you become incapacitated. The durable power of attorney effective if you are physically or mentally incapacitated, but ends upon death. After death, the Successor Trustee(s) have powers of management and the right to distribute the assets of a Trust to the beneficiaries if you have a Trust. Otherwise, the personal representative appointed in your Will or appointed by the court will probate your estate if necessary.
Before you execute a power of attorney it is imperative that
you have total confidence in the person named as the attorney-in-fact, since
that person will have the right to act on your behalf in regard to all
activities described in the documents. If
total confidence does not exist, do not sign the Power of Attorney.
There are several different types of powers of attorneys. A power of attorney may be special or limited to one specific act or type of act, or it may be general and become ineffective if the grantor dies or becomes incapacitated. A durable power of attorney will continue to be effective even if the grantor becomes incapacitated, but ends upon the grantor’s death. A durable power of attorney can become effective immediately upon signing or it can have a springing power and only become effective after the incapacity of the grantor or some other definite future act or circumstance. A durable power of attorney can also be a Health Care Power of Attorney, which is an advance directive that allows the attorney-in-fact to make health care decisions for the grantor. Health care decisions include the power to consent, refuse consent or withdraw consent to any type of medical procedure, service, care or treatment. A Living Will is a written document, which states one’s medical and health care wishes, but does not appoint another person to make health care decisions.
If you would like to execute a power of attorney or have questions regarding how to revoke a power of attorney, please contact the law firm of Spencer Evans for legal assistance.
SPENCER EVANS
ATTORNEY AT LAW, PLC
PLANNING FOR SUCCESSION SM
(623) 505-0565
se@spencerevans.com
