An important part of lifetime planning is the Power of Attorney.

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 by: Jeffrey Broobin

An important part of lifetime planning is the Power of
Attorney. Valid in all states, these documents give one or more persons
the power to act on your behalf. The power may be limited to a
particular activity (e.g., closing the sale of your home) or general in
its application, empowering one or more persons to act on your behalf
in a variety of situations. It may take effective immediately or only
upon the occurrence of a future event (e.g., a determination that you
are unable to act for yourself). The latter are "springing" Powers of
Attorney. It may give temporary or continuous, permanent authority to
act on your behalf. A power of attorney may be revoked, but most states
require written notice of revocation to the person named to act for
you.

The person named in a Power of Attorney to act on your
behalf is commonly referred to as your "agent" or "attorney-in-fact."
With a valid Power of Attorney, your agent can take any action
permitted in the document. Often your agent must present the actual
document to invoke the power. For example, if another person is acting
on your behalf to sell an automobile, the motor vehicles department
generally will require that the Power of Attorney be presented before
your agent's authority to sign the title will be honored. Similarly, an
agent who signs documents to buy or sell real property on your behalf
must present the Power of Attorney to the title company. The same
applies to sale of securities or opening and closing bank accounts.
However, your agent generally should not need to present the Power of
Attorney when signing checks for you.

Why would anyone give such sweeping authority to
another person? One answer is convenience. If you are buying or selling
assets and do not wish to appear in person to close the transaction,
you may take advantage of a Power of Attorney. Another important reason
to use Powers of Attorney is to prepare for situations when you may not
be able to act on your own behalf due to absence or incapacity. Such a
disability may be temporary (e.g., due to travel, accident, or illness)
or it may be permanent.

If you do not have a Power of Attorney and become
unable to manage your personal or business affairs, it may become
necessary for a court to appoint one or more people to act for you.
People appointed in this manner are referred to as guardians,
conservators, or committees, depending upon your local state law. If a
court proceeding, sometimes known as intervention, is needed, than you
may not have the ability to choose the person who will act for you.
With A Power of Attorney, you choose who will act and define their
authority and its limits, if any.

What if I move? Generally, a Power of Attorney that is
valid when you sign it will remain valid even if you change your state
of residence. Although it should not be necessary to sign a new Power
of Attorney merely because you have moved to a new state, it is a good
idea to take the opportunity to update your Power of Attorney.

Will my Power of Attorney expire? Some states used to
require renewal of Powers of Attorney for continuing validity. Today,
most states permit a "durable" Power of Attorney that remains valid
once signed until you die or revoke the document. However, you should
periodically meet with your lawyer to revisit a Power of Attorney and
consider whether your choice of agent still meets your needs and learn
whether developments in state law affect your Power of Attorney.

Note that Legalhelpmate.com (http://www.legalhelpmate.com/power-of-attorney.aspx) provides an easy-to-use, quick, and economical online method for creating completed legal documents for any occasions.

About the Author

Jeffrey Broobin is a free-lance writer on family and finance issues; his main goal is to help people during their complicated period of life.

Website: http://www.legalhelpmate.com

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