Power of attorney, what it actually means, is appointing another person or people authorization to make financial decisions on your behalf, in case of illness or an accident, in case that you are not mentally capable to make decisions on your own. It is a document that is signed by you and witnessed by two individuals. Attorney should not be confused as your lawyer, but refers to the person that you select to authorize your affairs.
There are two types of Power of Attorney, the first being A Continuing Power of Attorney that is appointed to take care of your finances and personal possessions. The person or persons that you select will have access to bank accounts, your business and any other finances if you become mentally incompetent, due to illness or an accident. The Power of Attorney authorizes the person that you appoint to manage your property including finances and assets.
The second other type is Power of Attorney for Personal Care. This Power of Attorney deals with decisions that are made for your personal health such as agreeing to medical care. It allows decisions to be made with hygiene and shelter, such as a nursing home etc.
It is very important to have a Power of Attorney appointed for your affairs in case of accident or illness that makes you mentally incapable. It protects your family and loved ones by giving them the power to access bank accounts and finances. Many times an individual will feel if they have a will with an executor named that this is sufficient. A will covers when you die, but a Power of Attorney is only effective when you are alive.
A Power of Attorney does not have to be a lawyer. It is usually someone that you trust, and knows you well and will act on your best interests. It can be a close family member or a good friend that you feel secure and confident in appointing. A Power of Attorney does not have to be just one person. It can be more then one and act together jointly or you can appoint individuals to act separately but as well as together, which is jointly and severally. If you decide on more then one person, then a form should be included of a disagreement resolution.
When deciding on the person(s) that you want for your Power of Attorney you should ask yourself these questions.
1. Who is the person(s) that you want to take care and manage your finances?
2. What will be your wishes and instructions that you will need for them to follow?
3. Will the Power of Attorney be general or limited?
4. If you want more then one attorney, will they act jointly or jointly and severally?
5. Do you want to have a substituted if your attorney cannot continue?
Having a Power of Attorney will give you the confidence in knowing that your personal and financial affairs are being taken care of by someone that you trust and will act on your best interest.
29 Oct
