What is a power of attorney?
A power of attorney is a legal arrangement through which you grant another person authority to make decisions or conduct business on your behalf.
It can be very specific – for example authorizing another person to conduct a single transaction (like the sale of a house or car) on your behalf. Or it can be very broad, authorizing the other person to make decisions on your behalf in almost all situations.
What are the types of power of attorney?
There are several types of power of attorney arrangements.
A financial power of attorney gives someone authority to conduct financial transactions.
A healthcare power of attorney allows another person to make medical decisions on your behalf.
Also, a power of attorney may be “springing”, where it activates only when certain circumstances occur (such as medical incapacitation). This a common approach used in estate planning.
Durable and non-durable powers of attorney are discussed below.
When is the best time to consider a power of attorney?
A power of attorney can only be executed when a person is not incapacitated and is competent to enter into a legal agreement. As such, an individual considering a power of attorney should put it in place before confronted with a disabling life situation. Planning ahead is the key to establishing an effective power of attorney.
What does the person designated as my power of attorney do for me?
The person designated in the power of attorney document is empowered to act on your behalf to the extent provided by the document.
I need a lawyer to set up a power of attorney?
While it is not required, it is advisable to have a lawyer draw up a power of attorney. Guardian works with area attorneys in preparing power of attorney documents.
What does it cost to have Guardian hold my power of attorney?
Guardian charges an hourly fee for power of attorney services, similar to the fees charged for other services.
Does power of attorney ever end?
You can revoke a power of attorney at any time, provided that you are not incapacitated. A non-durable power of attorney ends when you become incapacitated. A durable power of attorney, including a healthcare power of attorney, remains in effect if you are incapacitated, but otherwise can be terminated at any time.
What are the alternatives?
Guardianships and conservatorships are alternatives to a power of attorney. In most cases, establishing a power of attorney before being confronted with being incapacitated is a preferable arrangement.
Need more information?
Please contact us, your attorney, probate court, or another professional
in this field.
If your question is about guardianship or conservatorship, you find more
information at the National Guardianship Association’s web site: http://www.guardianship.org/.
(We are a member of the NGA.)
DISCLAIMER: This fact sheet is for informational purposes only.