|
Frisse & Brewster Law Offices
It's not about how much. It's about what's important.
|
~ What is a Power of Attorney?
A Power of Attorney is a document by which a principal - the person giving the power - appoints another person - called an attorney-in-fact or agent - to perform specific acts on the principal's behalf.
There are two basic types of Powers of Attorney:
1) General Power of Attorney, which grants the agent broad powers to deal with all of the principal's assets and to take any action on his or her behalf; and
2) Limited (or special) Power of Attorney, which allows the agent to perform only certain acts or to control specific property.
Traditionally, a Power of Attorney automatically terminates when the principal becomes disabled or dies. Although this is still true, states have passed legislation allowing a principal to grant Durable Powers of Attorney (either general or limited) that remain valid after the principal becomes incapacitated. A Power of Attorney is durable only when it specifically states that it is to continue upon the legal incapacity of the principal. Durable Powers of Attorney are used in disability planning to allow the agent to act on the principal's behalf during periods of disability.
~ When does my Power of Attorney become effective and when does it terminate?
This depends on the terms of the document and your state's laws. Usually your Power of Attorney is effective when you sign it. In the context of disability planning, of course, there is no need for the power until you are disabled, and some people are troubled about authorizing others to act for them while they are still capable of handling their own affairs. To address this concern, some states have laws authorizing "springing" Powers of Attorney. With a Springing Durable Power of Attorney, your agent is not authorized to act unless and until you become disabled
If the Power of Attorney is not a durable power, it will terminate upon your incapacity. All Powers of Attorney automatically terminate when you die.
You may revoke your Power of Attorney at any time. The best way to do this is to destroy all copies. If the agent has already transacted business with a third party pursuant to the power, you should notify the third party that you have revoked the power of attorney.
~ What is a Durable Power of Attorney for Health Care?
A Durable Power of Attorney for Health Care is an important part of disability planning. It is a legal instrument by which you designate an agent to make health care decisions for you in the event that you are unable to do so for yourself. In the Health Care Power, you can inform your agent of your preferences regarding medical issues that are important to you, such as home care, life support, and pain management.
Although a Health Care Power does not affect your assets, it is an important estate planning tool.
~ What is a Living Will?
A Living Will, or medical directive or physician's directive, depending on what you state calls it, is a directive to your physician that states that you do not want "extraordinary means" employed to keep you alive should you be in a terminal condition or in a permanently unconscious state. This will not only relieve your family of the burden of applying to the courts to authorize stopping artificial life support, but will also relieve your family from having to make this decision at all.
|
|