A "Power of Attorney" is a document whereby one person (called the "principal") authorizes another individual or entity (called an "agent" or "attorney-in-fact") to act on behalf of the principal. The most common uses for a Power of Attorney (POA) are financial transactions and health care decisions (see healthcare surrogate). Most states have one set of laws governing financial POAs and second set of laws governing POAs for health care decisions. Therefore, it is the common and recommended practice not to mix the two purposes into one document: i.e., an individual desiring to have a POA covering both financial and medical situations should prepare two separate POAs, one dealing with financial issues and the second dealing with medical issues.

In a Durable Power of Attorney, you name someone whom you trust explicitly to handle your financial affairs if you are unable to do so yourself. The person to whom you give power of attorney can write checks, pay bills, collect insurance benefits, apply for benefits, make living arrangements - do everything and anything that needs to be done for you. You can name the same person to be your Health Care Surrogate for medical care and your Durable Power of Attorney for financial matters.

A Power of Attorney is a "key to the house and bank account" and should not be assigned lightly. It can be made effective immediately upon signing or upon the occurrence of a specific event. Contrary to general thought and what the name implies, it is generally intended to be a temporary solution for emergency situations, it may not solve long-term financial planning problems. Further, the power of attorney dies with the principal. It cannot be used after death to “wind up” a person’s affairs and substitute for probate.

To learn more on a Power of Attorney, call us at 954-476-711 or email us for a consultation!

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