So, you're thinking about a Power of Attorney (or POA for short). In this article we will discuss what a Power of Attorney is, why it’s beneficial, when you should get one, and how to begin that process.
Let's jump right in!
What is a Power of Attorney?
This is a legal document that allows one individual to give another person the ability to act on their behalf. The person granting the authority is called “the principal” and the person who was granted the ability is called the “attorney in fact” or AIF for short.
How long does a Power of Attorney last?
A general POA is only in effect for as long as the principal is alive. (Phew! Good to know) Just an FYI, there are different types of POAs and some of them have stipulations on when they go into effect and when they end. We will go into that a little bit more here in a second. (See more on how long a Power of Attorney in Texas last: https://kretzerfirm.com/power-of-attorney-in-texas-everything-you-need-to-know/ )
If I grant POA to a trusted loved one, will I lose all control over my decision making?
Not necessarily! Certain types of POA only step in if you, the principal, are no longer mentally capable of running your affairs. (So don’t worry!!) And other types of POA only take effect for what you specifically authorize for however long you specifically authorize. Let me explain that a little further; I know it’s confusing. Just keep reading!
Are there different types of Power of Attorney?
Absolutely! There are POA’s for making all sorts of decisions. Some examples can be POA’s for:
- Making medical decisions on behalf of the principal (often called a medical or durable POA)
- Buying and selling property (general power of attorney)
- Handling financial and legal matters
- Managing the estate for the principal
- Filing Tax Returns
- Applying for government benefits
- And so much more
You can have your attorney draft a POA that encompasses all or just some of the decision making power described above. You can also draft the documents to take effect only under certain circumstances and you can set deadlines for when they end. It all depends on your individual needs and wishes! Isn’t that neat. (To read more on the different types of Texas power of attorney documents and what each one is commonly used for, click here https://www.legalzoom.com/articles/power-of-attorney-requirements-in-texas )
Is there a difference between a General Power of Attorney and the Durable Power of Attorney?
The one major differentiation between these two is when they take effect. A General POA gives your AIF the power to make decisions while you, the principal, retain mental capacity. Example, you own multiple properties, and you want to give your property manager the right to make decisions on your behalf regarding those specific properties he/she runs. Obviously, you are still in your right mind and able to make these types of decisions on your own, but you just rather be off on vacation with your family so why not give your AIF all the headaches of decision making so that you can enjoy that cocktail by the pool? I mean I would! Moving on to the Durable POA, well that’s the one that takes into effect in the event your incapacitated or become disabled. This is the most common form of a Power of Attorney. (If none of that made any sense, click here to read more https://legalbeagle.com/6458140-general-attorney-state-law-kentucky.html)
What if I don’t want to assign an attorney in fact?
Obviously, you don’t have to do anything you don’t want to. But if you don’t have a POA, and you become incapacitated in some way, (maybe a car crash leaves you in a coma, or you find yourself diagnosed with Alzheimer’s) your family may have to go to court, see a judge, and have you declared incompetent before any decisions can be made on your behalf. A process that could take years and cost thousands of dollars. Do you really want to leave your loved ones with such an ordeal? I didn’t think so!
How do I get a Power of Attorney set up?
There are a couple of steps I will share with you. Make sure you save this page for reference or write them down.
- Talk to an attorney! This is really important because there are so many variations of a POA that you want to make sure you get the one that is going to work best for you and your family. Yes, you can technically draft one online using a free legal drafting tool, but just remember, how you set this document up determines how your legal affairs are handled, please don’t leave that up to some computer-generated free template. After all, this is your life we are talking about!
- Once you have figured out what POA works for you and your attorney has begun drafting, think about who you want to appoint as your attorney in fact. Make sure it’s someone you trust 100% to honor your wishes and life’s choices. The person you pick will be your voice so take your time and choose wisely. When you know who you want, talk to them about what you're doing and how they will be representing you.
- Get your completed docs from your attorney and (this is my favorite part) get those docs notarized. Having the document in hand is great, but without a proper notarization, your attorney in fact can’t take over when the need arises. (To read more about the notary process of the POA, click here for another great blog article)
- Once the document is notarized, I recommend making copies. Make sure your AIF has one and you keep the original. Copies are not mandatory, but trust me, it’s better to make several and not need them then need them and not have them!
- Save your notarized POA in a safe, dry, place for the day it is needed. Hopefully, you will never need it and your attorney in fact never has to go through the stress of having to step in. But if you do, you're ready!
When should I start the process?
Now! Absolutely now. Why? Because you never know what the day will bring. Not to put this kind of bad juju in the air but, it’s possible that you could get in a car crash and find yourself in a coma tomorrow. You could go to sleep tonight and wake up forgetting completely who you are. There are so many ugly situations that I don’t want to go into because I think you get where I’m going here. If you don’t want your family left in a bad situation, you're going to take care of this now, before you find yourself incapacitated. Sorry, I know it’s hard to think about, but I would be doing you a disservice if I didn’t speak the truth. It is all coming from a place of love I promise.
Ok so now that I have officially scared you a little bit, ha-ha, let's do a quick recap of what we learned.
- A power of attorney is a legal document used to give a trusted individual the ability to make decisions on your behalf
- A power of attorney is important because without it, your loved ones would be forced to jump through frustrating hoops just to be able to make everyday decisions if you ever became incapacitated
- POA’s can be as complex or as simple as you, the principal, decide so it’s best to consult an attorney for drafting.
- Once you have your document, get it notarized ASAP
I take it you're ready to start the process of getting a POA together. If so, go ahead and schedule a free phone call with one of our agents so that we can connect you with some of our trusted attorney associates. And once you're ready with your docs, don’t forget to come back here to schedule your notary appointment.
Click here:
Notary Consultation (h2snotary.com)
P.S. You don’t have to be in Texas to connect with us. We will connect you with an attorney in your state and when you're ready to notarize, we are authorized by the state of Texas, to conduct your notarization completely remotely…. That’s right, we can notarize your POA with the help of zoom and other encrypted software that’s super easy to use. (Click here for blog on remote online notarization)
Can’t wait to meet you!
Sincerely,
Monica Hopkins, Notary Public
“Here to Serve”
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