Power of Attorney and Estate Planning (POA) Power of Attorney is an authorized written contract in which an individual, ‘The Principal’ grants another individual, ‘The Agent’, authority to act on the principal’s behalf to make decisions related to private, business or financial use. The main branches of power of attorney include •Durable power of attorney •Statutory power of attorney •Medical power of attorney. Durable power of attorney : The document of a Durable power of attorney states that the transfer of power is effective immediately or when the principal is unable to coherently make decisions on his/her own, due to some disability or is incapacitated. If the durable power of attorney is to become effective when the principal becomes disabled or incapacitated, the definition of “disability” and “incapacity” should be included in the power of attorney, along with a method of showing the existence of a disability or incapacity. This helps the agent and the third parties know, when the powers are passed to the agent. This is important because some third parties may be cautious about recognizing the agent’s power to act on behalf of the principal. Statutory power of attorney : It simply tracks the language from the State’s power of attorney statute. To make a power of attorney legally binding, it must comply with all the state laws, and should be signed, dated and notarized by the principal. Medical power of attorney : It assigns an agent to make health care decisions for the principal, when a physician certifies in writing that the principal is no longer able to make these important decisions. For example, Even when a person is unable to make health care decisions while in a severe coma. An agent is obligated to follow the principal’s instructions when making decisions on his/her behalf and the principal may revoke the authority granted to the Agent. Two witnesses must be present for the signing of the written medical power of attorney, and there are limitations on who may serve as witnesses. Establishing the extent of, and limitations to, the agent’s power is essential to a successful relationship between the two parties to the power of attorney Austin. An agent can be anyone the principal trusts (who is typically 18 years old or older) to carry out the principal’s important decisions, which may include financial, personal tax, or real estate matters. The power of attorney may identify alternative agents if the named agent dies, becomes legally disabled, resigns, or refuses to act on behalf of the principal. A power of attorney set the standard for the amount of authority that the agent will have. It should be very specific
about what powers are being granted and what limitations are placed on these powers. Power of attorney is a valuable tool that can provide the principal with the peace-of-mind that his/her affairs will be taken care of. If you would like to know more about durable, statutory and medical power of attorney, consult with a trusted legal professional.
Author's Bio : Attorney Deke Foxhoven works to provide consultation on a variety of legal affairs. Foxhoven is an experienced and Austin uncontested divorce attorney who specializes in providing legal services relating to estate planning, business law and family law . Call his office at (512) 333-2004 for no charge to discuss your situation, or submit your questions.
Power of Attorney helps the agent and the third parties know, when the powers are passed to the agent. This is important because some third...