What happens if I get sick? Who will pay my bills? Who can make decisions for me? In this post, we will try to answer some of the most frequently asked questions we receive during an estate planning consultation.

What Is A Power Of Attorney (POA)?

A power of attorney involves the Principal – the person granting the power and the Agent – the appointed person. A POA can make financial decisions, gift money, authorize real estate transactions and more. There are different types of Powers of Attorney documents:

• General Power of Attorney – an Agent can perform any act on behalf of the principal as soon as the document is executed. General Power of Attorney is revoked when the principal actively revokes the power of attorney or passes away.
• Durable Power of Attorney - takes effect as soon as the document is created, and the power continues if the principal becomes incapacitated.
• Springing Power of Attorney - Springing Power of Attorney only takes effect once the principal becomes incapacitated or unable to make decisions.
• Limited Power of Attorney - the Agent has specific, limited powers as set forth in the document.

What Happens If You Don’t Have A Power of Attorney?

No one will have the legal authority to act on your behalf. Those you trust will lack the legal authority to do things to help you, like access your bank accounts to pay your bills.

What Are The Power of Attorney Signing Requirements?

In order to sign documents as a Power of Attorney, the Agent must be:  

• Over 18 years old
• Legal Capacity
• Notarized
• In most states, one or more witnesses are required.

How Do I Revoke a Power of Attorney?

There are a few steps to take to revoke a power of attorney. These are different depending on the state the Principal lives in and may be more complicated depending on how much the document has been used:

• Destroy the original POA
• Notify your previous Agent that you have revoked the POA
• Notify all institutions that have copies of that POA document i.e. doctor’s offices, hospitals, banks
• Document must be revoked in full
• Sign a new POA and appoint a new Agent

What Is A Healthcare Proxy?

A healthcare proxy is a document that names someone to communicate your wishes and make decisions for you related to healthcare when you cannot speak for yourself.

What Happens If You Don't Have a Healthcare Proxy?

If you do not designate a healthcare proxy, there may be a question as to who you want making decisions related to your healthcare.

What Is A Guardianship?

If there is no Power of Attorney or Healthcare Proxy identified, your loved one may need to file for guardianship to make decisions on your behalf. Guardianship is a time consuming and expensive process that requires involvement by the court, physician and attorney. Under a plenary (full) guardianship, the rights of the protected person are very similar to those of a minor child with the guardian having the right to exercise those rights in much the same way a parent would for a minor child. It involves the loss of a person’s civil rights and is a very serious court action.

Who Should I pick To Be My Agent?

Ideally you should choose someone who you trust that can manage your money and make financial decisions for you.

Where Should I Store My Documents When Completed?

• Ideally in a fire-proof safe in your house
• Accessible but in a place that is protected from the elements

How Often Should I Review My Power Of Attorney and Healthcare Proxy Documents?

You should review your documents every five years for any potential changes, or when there are major life changes.

Having a power of attorney and healthcare proxy allows you to designate a person(s) that you trust to enact on your behalf for financial and healthcare issues. Making sure that your needs are met can bring you peace of mind and make for an easier time in a crisis.

The team at Archer Law Office has the perfect combination of staff and experience to handle any crisis situation and provide your family with the stability and guidance you need to help yourself and your loved one. Please reach out to schedule your consultation.