Posts Tagged ‘Act’

How to Get a Durable Power of Attorney

December 16th, 2009



A durable power of attorney is a form that is used as a legal way to appoint some one to act on your behalf if you become incapacitated. To get one you can go down to your county’s courthouse and pay a ‘print fee’ for a copy for one. An even easier way to get one though is by going online and finding a durable POA form you can fill out at home on your PC then print out yourself; theirs many sites out there that offer these kind of fillable forms.

There are a few things you should know though once you’ve gotten a hold of a fillable durable power of attorney form. The person making the document, which is the person who appoints the representative to represent their interests when they become incapacitated, is called the ‘principal’. The person appointed by the principal is called the agent or attorney-in-fact. Besides understanding these two terms there is nothing else you need to know to finish filling out your durable POA.

Once you’ve created a solid durable power of attorney then its time to get it signed and notarized. As soon as a durable POA is signed it is in effect, but notarizing it will give your county a record of it and therefore will provide evidence that it is legal if disputes arise later. Once your durable POA form is notarized then you’re all done, and you have just filed a durable POA form on your own without a lawyer.

At anytime the principal may revoke a durable power of attorney they’ve made. This is done by first informing the agent in writing then second you fill out and notarize a revocation of power of attorney. Many lawyers will also suggest that you even should inform anyone that has done business with the agent and tell him or her that your agent will no longer represent you.

By: Nick Fagan

What is Power of Attorney?

December 8th, 2009



Power of Attorney is a legal document where one person authorizes another to act on his/her behalf. It allows that authorized person to manage business and/or financial affairs when one person is no longer able to do so. It may be required due to illness, overseas travel or mental incapacity.

Why is it important to organise a Power of Attorney? Should you be considered incompetent to deal with your finances – you need somebody else to be authorised to deal with your affairs. A Power of Attorney document allows you to choose the person, with defined authority and limits if desired, the power to protect, or re-arrange, your assets.

The person named in a Power of Attorney to act on your behalf is 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.

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 on your behalf. Usually referred to as guardians, conservators, or committees. If a court proceeding is required then you may not have the ability to choose the person who will act for you.

By executing a Power of Attorney for Finances (also referred to as a Durable Power of Attorney for Finances) you can decide who you want to make decisions about your legal and financial matters. You can be very specific about what actions you are authorizing your partner (or agent) to make, including which accounts he/she has access to and the types of decisions he/she can make.

A Power of Attorney for Health Care allows decisions to be made specifically on what kind of treatment the person wants, based on their medical condition.

A Living Will in some ways duplicates the information in the Power of Attorney for Health Care. It is a separate document that lets your family members know what type of care you do or do not want to receive should you become terminally ill or comatosed. It can also cover situations in which a person may survive but is not capable of making their own medical decisions.

It can be a directive stating that there is to be no heroic measures to keep the person alive when there is no realistic prospect of any meaningful recovery.

An Enduring Power of Attorney is a legal document authorizing a named person or people to act on your behalf. Subject to certain conditions it continues in force until death.

Guardianship is a legal relationship whereby a probate court gives a person (the guardian) the power to make personal decisions for another (the ward). A family member or a friend can initiate the proceedings by filing a petition in the probate court where the person lives. A medical examination by a licensed doctor may be necessary to establish the person’s condition. A court of law will then determine whether that person is unable to meet the essential requirements for his/her health and safety.

As long as you are alive you have the power to revoke the Power of Attorney. To do this you must contact your attorney-in-fact to advise that the Power of Attorney has been revoked.

You can also specify a date that the Power of Attorney will expire.

A Power of Attorney is also important for unmarried couples, who live together, when a partner becomes incapacitated and unable to make decisions. When this occurs the law usually assigns the incapacitated person’s next of kin as the decision maker. With a Power of Attorney, unmarried couples can give their partners the power to make decisions.

By: Gay Redmile

A Power of Attorney is No Cure-All

November 16th, 2009



A power of attorney means peace of mind to a lot of people. What they don’t know is that there are several different types of powers of attorney and if you don’t have the right one it can put you and/or your family at significant risk depending upon your particular set of circumstances. An attorney can give you the details of each type of power of attorney and how they work in your state but here’s a quick description of the three most common.

The Most Common Powers of Attorney

• The Universal Power of Attorney allows one or more people to act on your behalf for any reason at any time.

• The Limited Power of Attorney specifies under what set of circumstances or during what period of time someone is allowed to act on your behalf for certain activities. As an example, it can give someone the authority to act on your behalf for all of your financial affairs in the event of your illness or incapacitation.

• The Specific Power of Attorney usually gives someone authorization to act on your behalf for one specific undertaking like authorizing someone else to sign the closing documents when you buy or sell a house.

Beware of the Universal Power of Attorney
So, why is it important for you to know what types of powers of attorney there are and the benefits and risks of each? The answer is that most of us use only the Universal Power of Attorney; thinking that we are protecting ourselves because we lack the awareness of all of the available options. Many people don’t realize a Universal Power of Attorney gives nearly unlimited power to the holder of this document. It gives that person the legal ability to at any time and for any reason access your medical records; withdraw funds from your bank or investment accounts; sign a contract in your name to buy or sell securities, real estate, an automobile or boat; take out a loan and on and on.

Limited Power of Attorney
A Limited Power of Attorney is an option for designated activities that kicks in only in the event of illness or incapacitation (which is valid as long as a doctor continues to certify the illness or incapacitation) or during a specific span of time. These limits reduce your exposure to possible excesses or bad judgments by those who hold your limited power of attorney.

Using Different Powers of Attorney for Maximum Flexibility
Another thing to consider when designing a legal backup system that will come to your aid when the unexpected happens is whether it is a good idea to overburden any one person with all of the responsibilities of keeping your life afloat until you are able to once again take control of it yourself. The person best suited to oversee your financial and small business matters may not be the best person to care for your pets, children or household. Consider that it would be overwhelming for one person to have to take care of all facets of someone else’s life for any period of time. Making separate authorizations naming several different friends or family members to undertake the various responsibilities of your life protects you more thoroughly.

Knowledge is Power
It is equally important that you provide those you have entrusted to act on your behalf in times of emergency or crisis with the information and instructions necessary for them to know how to help you. So, no matter how many authorizations or powers of attorney you may have put into place, you need to make sure that those who hold your powers of attorney know what you want and expect – from your business needs to the running of your household. If you don’t do this, it would be like hiring a builder but not giving him the plans for the house you want to build.

This process sounds daunting but it can actually be very easy and inexpensive with resources like those offered at www.livingsmartguides.com Whatever tools you select to enable others to give you the help you need in a crunch, don’t delay putting these protections into place so you’re better prepared for whatever lies ahead.

By: Deborah Dillon