Power of attorney (POA) is a legal document that gives an individual (the agent or attorney-in-fact) the rights to make decisions for another individual (principal). The attorney-in-fact may be given full authority or limited authority to make legal decisions regarding the principal’s assets, finances, or medical care. The POA is usually used when the principal becomes incapacitated or when he is unable to make some decisions himself.
How soon should a Power of Attorney be implemented?
Power of attorney goes into effect immediately it is created. However, certain conditions may be stated in the document to permit decisions to be made for the principal only when they become incapacitated or unable to person duties.
As soon as you become incapacitated, your loved ones can’t simply make those crucial decisions for you because they are your relation. In the modern world we find ourselves, things don’t work that way. Without a POA, families may have to go through a lengthy, stressful process to make your decisions, which could ultimately affect you and your family.
In addition if you fail to designate someone, the Brooklyn law court has the right to do so on your half if you become incapacitated and you have no say regarding who should be in charge.
Can a Power of Attorney be terminated?
A POA is not infinite; it can be terminated for several reasons. These reasons are:
- The death of the principal
- When the principal cancels the POA
- When the court deems it as invalid; as such the document cannot hold.
- When the principal divorces their spouse, who is the agent
- When the agency cannot execute the stated responsibilities.
Types of POA and when they can be implemented.
- Durable power of attorney
This Power Of Attorney document goes into effect as at when created, and lasts beyond incapacity. That is, your agent will continue making decisions for you even when you become incapacitated. The agent can carry out their authorization throughout the lifetime of the principal until the principal issues a cancellation of the arrangement
- Springing power of attorney
This Power Of Attorney document only goes into effect the moment you are declared legally incapacitated. As such any form of probate would not be necessary in choosing a guardian or conservator.
- Medical power of attorney
The medical Power Of Attorney is also known as a healthcare proxy. In this Power of Attorney document, your agent is only authorized to make healthcare decisions for you rather than fiscal ones. This document does into effect once the principal has medical conditions that requires critical decision.
- Financial power of attorney
A financial power of attorney provides you with the opportunity to give a trusted person the right to oversee your finances and properties in the event that you become incapacitated. The person chosen is usually regarded as an agent or an attorney-in-fact. It is not necessary that you select an attorney as your attorney-in-fact. You can simply select someone who is genuine, familiar with your family, and trustworthy.
- General power of attorney
This Power Of Attorney document, allows your attorney-in-fact authority over your financial, healthcare, and personal affairs. Typically, the dates for this power of attorney to go into effect are always state within the documents.
Bottom line
As you get older, you may be worried that someday you may become unable to handle your own personal affairs, let alone the financial ones. But what if you’re told you could make plans towards that now? Yes, you could lay down instructions now to ensure that your affairs are managed by someone of your choosing. A power of attorney helps you achieve that.
By creating a power of attorney document, you would have a say even when you can’t make decisions due to Alzheimer’s or dementia and any life threatening situations.
Do you need a Power of Attoney?
Need help with drafting your power of attorney or determining which to create? Our estate planning attorneys NYC are ready to assist you. We ensure your documents are state compliant and works to your best interests.
Contact us.
