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An important part of lifetime
planning is the Power of Attorney. Valid in all states,
these documents give one or more persons the power to act
on your behalf. The power may be limited to a particular
activity (e.g., closing the sale of your home) or general
in its application, empowering one or more persons to act
on your behalf in a variety of situations. It may take
effective immediately or only upon the occurrence of a
future event (e.g., a determination that you are unable to
act for yourself). The latter are "springing"
Powers of Attorney. It may give temporary or continuous,
permanent authority to act on your behalf. A power of
attorney may be revoked, but most states require written
notice of revocation to the person named to act for you.
The person named in a Power
of Attorney to act on your behalf is commonly referred to
as your "agent" or "attorney-in-fact."
With a valid Power of Attorney, your agent can take any
action permitted in the document. Often your agent must
present the actual document to invoke the power. For
example, if another person is acting on your behalf to
sell an automobile, the motor vehicles department
generally will require that the Power of Attorney be
presented before your agent's authority to sign the title
will be honored. Similarly, an agent who signs documents
to buy or sell real property on your behalf must present
the Power of Attorney to the title company. The same
applies to sale of securities or opening and closing bank
accounts. However, your agent generally should not need to
present the Power of Attorney when signing checks for you.
Why would anyone give such
sweeping authority to another person? One answer is
convenience. If you are buying or selling assets and do
not wish to appear in person to close the transaction, you
may take advantage of a Power of Attorney. Another
important reason to use Powers of Attorney is to prepare
for situations when you may not be able to act on your own
behalf due to absence or incapacity. Such a disability may
be temporary (e.g., due to travel, accident, or illness)
or it may be permanent.
If you do not have a Power
of Attorney and become unable to manage your personal or
business affairs, it may become necessary for a court to
appoint one or more people to act for you. People
appointed in this manner are referred to as guardians,
conservators, or committees, depending upon your local
state law. If a court proceeding, sometimes known as
intervention, is needed, than you may not have the ability
to choose the person who will act for you. With A Power of
Attorney, you choose who will act and define their
authority and its limits, if any.
What if I move? Generally,
a Power of Attorney that is valid when you sign it will
remain valid even if you change your state of residence.
Although it should not be necessary to sign a new Power of
Attorney merely because you have moved to a new state, it
is a good idea to take the opportunity to update your
Power of Attorney.
Will my Power of Attorney
expire? Some states used to require renewal of Powers of
Attorney for continuing validity. Today, most states
permit a "durable" Power of Attorney that
remains valid once signed until you die or revoke the
document. However, you should periodically meet with your
lawyer to revisit a Power of Attorney and consider whether
your choice of agent still meets your needs and learn
whether developments in state law affect your Power of
Attorney.
Note that Legalhelpmate.com
(http://www.legalhelpmate.com/power-of-attorney.aspx)
provides an easy-to-use, quick, and economical online
method for creating completed legal documents for any
occasions.
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About
The Author
Jeffrey
Broobin is a free-lance writer on family
and finance issues; his main goal is to
help people during their complicated
period of life.
Website: http://www.legalhelpmate.com |
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