Power of Attorney
A Power of Attorney allows
you to name someone to manage your affairs when you are unable
to do so. The person who signs (executes) a Power of Attorney
is called the Principal. The Power of Attorney gives legal authority
to another person (called an Agent or Attorney-in-Fact) to make
property, financial and other legal decisions for the Principal.
A Principal can give
an Agent broad legal authority, or very limited authority. The
Power of Attorney is frequently used to help in the event of
a Principal's illness or disability, or in legal transactions
where the principal cannot be present to sign necessary legal
documents.
A Power of Attorney can
be made to start immediately, or upon mental incapacity. A Power
of Attorney can be used to designate someone to make medical
decision for you in the event that you are unable.
What kinds of
legal authority can be granted with a Power of Attorney?
A Power of Attorney can
be used to grant any, or all, of the following legal powers
to an Agent:
- Buy or sell your real estate
- Manage your property
- Conduct your banking transactions
- Invest, or not invest, your money
- Make legal claims and conduct litigation
- Attend to tax and retirement matters
- Make gifts on your behalf
How do I select
an Agent for a Power of Attorney?
You should choose a trusted
family member, a proven friend, or a professional with an outstanding
reputation for honesty. Remember, signing a Power of Attorney
that grants broad authority to an Agent is very much like signing
a blank check. Certainly, you should never give a Power of Attorney
to someone you do not trust fully. And do not allow anyone to
force you into signing a Power of Attorney.
Can I appoint
more than one Agent in a Power of Attorney?
Yes. You may appoint
multiple Agents. If you appoint two or more Agents, you must
decide whether they must act together in making decisions involving
your affairs, or whether each can act separately.
Once I sign a
Power of Attorney, may I continue to make legal and financial
decisions for myself?
Yes. The Agent named
in a Power of Attorney is your representative, not your "boss."
As long as you have the legal capacity to make decisions, you
can direct your Agent to do only those things that you want
done.
Do I need to
have my signature witnessed on a Power of Attorney?
Yes. Your signature on
the Power of Attorney must be witnessed by a Notary Public.
