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Consider These Powers Of Attorney Part Of An Estate Plan

16 October 2019

Deann Miles

When it comes to a complete estate plan, you may need more than one power of attorney (POA) designation. These handy and simple legal tools can make things easier when you are unable to deal with matters yourself. Estate planning is about more than just a will or a trust – it's increasingly about planning for both incapacity and being out of reach to make decisions. Read on to find out more.

You Are in Charge

All powers of attorney are driven by the wishes and stipulations of the principal and are enforced by an agent. Agents should be chosen with an eye to trustworthiness, reliability, and acumen. Since powers of attorney vary in scope, consider matching the agent to the job. For example, if you need someone to watch over your finances, appoint an agent that has knowledge of your financial affairs and that understands financial matters. Consider appointing an alternate agent, two agents that are to work together, or a series of agents for various duties. You can have as many powers of attorney as you wish and you can revoke or change the POA any time you wish.

POA Limitations

Before you plan out your POA, it's important not to cross the line and create one that is unenforceable. Don't use a POA to:

1. Direct an agent to marry or divorce someone on your behalf.
2. Vote in an election on your behalf.
3. Create or change your will.
4. Create or change another POA for you.
5. Perform an illegal act.
6. Perform almost any act involving a minor child. These acts cannot be performed using a POA. For example, if you have guardianship over a child, you cannot use a POA to allow an agent to oversee that minor in your stead. You can, however, make provisions in a will or a trust to deal with events of incapacity in dealings with minor children.

Common Types of POA

A general POA is, well, general and performs almost any task you assign. These usually focus on financial issues. On the other hand, a limited POA gets very specific about things. For example, the POA might address a single action like appearing in your stead at a home closing. A limited POA can also be of limited duration by either time or event. For example, it might give an agent decision-making powers while you are out of the country for a month. A medical POA (also known as an advance directive) appoints an agent to make medical decisions if you are incapacitated. These can be very specific and address resuscitation issues and end-of-life care.

Consult with an estate lawyer to help you in creating a comprehensive set of POA provisions. You can learn more about estate planning by visiting websites like http://valentineandvalentine.com.

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