Importance of a Power of Attorney
Just because you have a will
or trust does not mean your estate plan is
complete. There are other documents (such
as a living will, medical power of attorney,
and financial power of attorney) that
should also be included.
Of these additional documents, the power of attorney (PoA) may be the most
important. A PoA, which authorizes
someone to make decisions for you and "act on your behalf," may be separated
into a medical PoA and a financial PoA, or
in some cases, a single document may
appoint someone to make both financial
and medical decisions for you.
Consider the story of Joe and Jane, an
unmarried couple. Joe recently suffered a
medical emergency, and although he had
been with Jane for a number of years, he
had never appointed her as his agent (or
attorney in fact), i.e., he never signed a
PoA authorizing Jane to act on his behalf.
Fortunately, Joe was well enough to
appoint Jane as his agent. However, if he
had not been, a difficult guardianship case
may have resulted, and Joe may have
become a ward of the court, certainly not
what Joe nor Jane would have wanted.
(Although this example is of an unmarried
couple, it could easily be translated to a
single parent who has not appointed a
child or other trusted person as his agent.)
PoAs can be drafted in many ways: as a
limited PoA (to address a particular event
or a specific account); as a general PoA
(which allows broader authority); as a
springing PoA (which authorizes the agent
power in the future, typically at the time of
incapacity of the principal); or to take
effect immediately.
To make sure your power of attorney is a
blessing rather than a curse, enlist the
services of a professional to ensure it is
drafted with safeguards to protect you and
to meet your particular needs.
Source: www.NWITimes.com, 7-16-06 |
