WALTEMATH LAW OFFICE

Powers of Attorney

A Power of Attorney is a document in which you may name a person or entity to act for you.  There are many types of Powers of Attorney.  A FINANCIAL POWER OF ATTORNEY, also known as a General Power of Attorney, gives your agent authority to mange your finances. For example, the agent may deposit money into your bank accounts, withdraw money from your bank accounts and discuss your finances with third parties like accountants and attorneys. Your agent may NOT override your wishes and if they do you can revoke (cancel) their authority.  A MEDICAL POWER OF ATTORNEY gives your agent the authority to talk to your doctors about medical concerns and they can make medical decisions for you, if your doctor thinks you are unable to make decisions for yourself.  There are also LIMITED POWERS OF ATTORNEY which are used for a specific event, like selling real estate.  For example, you may name an agent to handle a real estate closing if you are unable to attend.  

Powers of Attorney may be durable.  DURABLE POWERS OF ATTORNEY allow an agent to make decisions for you if you become incapacitated.  Both the Medical Power of Attorney and the Financial Power of Attorney may be Durable if they have specific language which states that they are only effective upon your incapacity or disability.  A power of attorney may be effective either now, or upon your incapacity or disability.  It is your choice on who you want to name as your agent, when you want your power of attorney effective and what powers you wish to give to your agent.

 There is a common misconception that a power of attorney may be used by the agent after the death of the principal.  ALL POWERS OF ATTORNEY EXPIRE UPON THE DEATH OF THE PERSON WHO GAVE THE POWER OF ATTORNEY, or the principal. The agent may not use the power of attorney after the death of the principal.

 A Power of Attorney may be created by any person over the age of 18 who understands what they are doing.  You must know the name of the person(s) that you want to name as your agent, and you must know that you are giving the agent powers to act for you.  If you create a Power of Attorney, you are giving someone else the right to help you, you are not giving up total control of your rights to make decisions.  The agent is required to act in your best interest and follow your wishes.  You should talk to the person you want to name as agent, before naming them as your agent in a power of attorney, to ensure that they will follow your wishes.  No one must act as your agent and your agent may resign at any time. 

 An agent has important responsibilities.  Your agent must keep good records of all financial records and they must share the records with you. Your agent should never commingle their funds with yours.  An agent must act for you in good faith and if they do not they can be held personally liable.

 A Power of Attorney is an important legal document.  You should consult with an attorney when creating such a document.