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Powers of Attorney
SERVICES: Durable Power of Attorney for Finances, Power of Attorney for Healthcare
The words "power of attorney" may sound ominous. Many people in the prime of life find it difficult to imagine - let alone plan for - a time when they may be unable to make their own financial or medical decisions. Others appreciate the possible uses for a power of attorney, yet mistakenly believe they must give up control by signing one.
But if used responsibly, a power of attorney can be invaluable in protecting your personal and financial well-being. It is a legal tool that empowers you by determining the individuals who will make important decisions for you, if you are unable to make them for yourself, as well as providing you with a voice as to the outcome of decisions that affect you. In essence, it gives you control over your destiny at a time when you are not able to choose.
The key to granting a power of attorney with confidence is to carefully select the decisions it will cover and the circumstances under which it will be effective.
What is a Power of Attorney?
Regardless of the type, powers of attorney involve one person (the "principal") giving another person (the attorney-in-fact or "agent") the authority to take action on the principal's behalf. Powers of attorney are generally distinguished through the following features:
"General" vs. "Special" Power. A "general" power of attorney authorizes the agent to do most everything the principal can do (except for some things, such as creating a Will or serving as a fiduciary, which state law generally does not allow a principal to delegate). Alternatively, a power of attorney can be a "special power," which is limited in scope to certain topics or types of decisions specifically described or referenced in the power of attorney itself.
"Springing" Power of Attorney. A power of attorney can be effective as soon as the principal signs it. However, this need not be the case. Some people favor a "springing" power, which is not operative until a future event occurs, such as the principal's incapacity. This type of power of attorney only "springs" into effect to allow the agent to make decisions if and when the principal is unable to do so, even on a temporary basis, such as during recovery from surgery. If the principal later regains the ability to make the types of decisions covered, the springing power can "recoil," terminating the agent's authority, unless triggered again.
"Durable" Power of Attorney. An agent's authority to act under a power of attorney generally ends when (i) the principal revokes the power of attorney, (ii) the power of attorney expires (if granted only for a specific time) or (iii) the principal becomes incapacitated or dies. However, a "durable" power of attorney is effective even if the principal becomes incapacitated.
Specific Powers to Grant. You may find a power of attorney to be helpful in decisions regarding one or more of the following financial and personal concerns:
Funding a Living Trust. As part of the process of creating a living trust, spouses commonly grant each other a special power of attorney for the express purpose of transferring their assets to the trust. In this way, the process of funding the trust can continue if one spouse becomes incapacitated.
Medical Care. Perhaps the powers most commonly granted by our clients concern their health care. Heaven forbid you are in an accident and unable to make and communicate a decision about your medical treatment. Who would select and direct your health care providers and institutions, approve (or reject) diagnostic tests, surgical procedures and medication programs and, if needed, determine whether to provide, withhold or withdraw life support and all other care?
By creating a durable power of attorney for health care, you can specify the person to make these decisions on your behalf, together with one or more successors in case your first choice is unavailable.
Many people grant a health care power as part of an Advance Health Care Directive, in which they also describe their wishes regarding heroic measures, life-sustaining treatment, organ donation and similar issues.
Residential & Personal Care. A power of attorney can provide an agent with the authority to manage the principal's personal care, including the authority to decide where to live, arrange for meals, hire household employees, provide transportation, handle mail and arrange recreation and entertainment. Wouldn't you rather select the person who would have this power if you become unable to make the decisions for yourselve rather than leave the decision to state law.
Pricing for the above services.
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