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Power
of Attorney
A
power of attorney is used for situations where an individual cannot
be present, but that individual has entrusted someone to do the
job in their place. When someone holds "a power of attorney,"
they are able to enter into contracts, negotiate, and settle matters
as if they were that other person.
An
ordinary power of attorney can usually be completed by completing
specific forms
for your state of residence. The power of attorney typically expires
when a grantor becomes incompetent or passes away. The theory is
that if the principal couldn't do it on their own, then the agent
shouldn't be able to do it either. This makes sense in many financial
and commercial situations, but makes little sense when dealing with
elderly issues.
 Durable
Power of Attorney
A
Durable Power of Attorney can act on a person's behalf even while
that person is still alive. People suffering from dementia or
senility, who are no longer competent to make their own decisions,
need to continue to make financial and medical transactions long
after they have the capacity to do so. A Durable Power of Attorney
allows them to do that.
Setting
up a Durable Power of Attorney is as easy as signing a single legal
document, naming who you would like to appoint as your agent. There
are no hearings or court proceedings to go through.
What
happens if you do suffer from dementia or are incapacitated, and
have not signed a Durable Power of Attorney? If you have not named
an agent to act on your behalf, you can only hope that someone will
become a Conservator for you.
Conservatorship
is a lengthy and expensive court procedure requiring someone to
volunteer to become your Conservator. Finding a volunteer, whom
you trust with your affairs, to suddenly appear and want to be your
Conservator is rare. In many cases, it is also unreasonable to expect
there will be enough money and time to go through the court proceedings
necessary to establish the conservatorship.
Individuals
granted Power of Attorney must, by law, act in good faith at all
times on behalf of the grantor. Suppose an elderly man is declared
incompetent, but had given his adult child a Durable Power of Attorney.
The son cannot turn around and put his father's house in the child's
name, or sell off assets for his own use. The law maintains agents
have a fiduciary duty to the grantor, and cannot take advantage
of his or her position.
Medical
Power of Attorney
A
Medical Power of Attorney (also known as a Durable Power
of Attorney for Health Care) is so critical, because it allows a
trusted agent to make healthcare decisions on your behalf. Few hospitals
wish to take on the responsibility of determining your healthcare
decisions for you, especially in this litigious society.
The
Medical Power of Attorney helps your doctors determine when life-supporting
measures should be stopped. If your wish is to not use life-sustaining
measurer, you can convey this to the person you've named, and they
will be able to fulfill your wishes on your behalf. A Medical Power
of Attorney only has this responsibility to you for healthcare decisions,
and cannot make financial or other decisions on your behalf (unless,
of course, you've granted both Powers of Attorney to the same person).
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More About Powers of Attorney
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Power
of attorney laws vary from state to state. However, the professionals
at SaveWealth can help you establish your own Power of Attorney,
and teach you how to combine these important tools with other
advanced estate planning techniques.
For
a FREE Special Report on the Durable and Medical Power of
Attorney,
simply contact
us. Your request is confidential, and the information
will be sent right away.
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