Uncategorized

What You Need To Know About Power Of Attorney

April 18, 2024

elder law lawyer Knoxville, TN

What You Need To Know About Power Of Attorney

Assigning a power of attorney (POA) is a significant legal action, and your Knoxville, TN elder law lawyer can help you with your next steps. Here’s a comprehensive look at what you need to know about the power of attorney.

Types Of Power Of Attorney

The first step in understanding this critical tool is to recognize the different types of power of attorney available:

  • General Power of Attorney: This grants broad powers to the agent, including managing financial transactions, buying life insurance, settling claims, and operating business interests. The authority under a general POA ends if the principal becomes incapacitated or passes away.
  • Durable Power of Attorney: Unlike a general POA, a durable power of attorney remains in effect even if the principal becomes mentally incapacitated. This feature makes it especially important for planning for medical issues and end-of-life care.
  • Special or Limited Power of Attorney: This is often used when the principal cannot handle certain affairs due to other commitments or health reasons. It is limited to specific tasks, like selling property (real estate), managing real estate, collecting debts, or handling business transactions.
  • Healthcare Power of Attorney: This authorizes someone to make medical decisions on behalf of the principal if they are unconscious, mentally incompetent, or otherwise unable to make decisions on their own.
  • Springing Power of Attorney: This POA becomes effective at a future time and only under circumstances that you specify, such as the onset of a disability.

Key Considerations When Choosing An Agent

Choosing the right agent to act under your power of attorney is as vital as deciding to create one. The designated agent should be trustworthy and competent to handle the responsibilities given. Here are a few considerations:

  • Trustworthiness: The agent should have a good track record of making sound decisions and be trusted to act in your best interests.
  • Availability: Consider their ability to carry out the required duties; for instance, if managing extensive financial matters, they should be capable and available to do so.
  • Willingness to Serve: The agent should be willing to take on the responsibilities associated with the POA.
  • Understanding of Your Wishes: It’s crucial that the agent understands your preferences regarding medical care and how you would like your assets managed.

Legal Requirements

The creation of a power of attorney must adhere to the laws of the state in which it is executed. This typically involves having the document notarized or witnessed, and it must be signed by the principal who must be competent at the time of signing.

Revoking A Power Of Attorney

As circumstances change, it may become necessary to revoke a power of attorney. This process involves signing a revocation document that is then distributed to all parties who might be affected, including any agents currently named. It is also wise to retrieve all copies of the previous POA.

The Role Of Legal Guidance

While it’s possible to draft a power of attorney on your own, professional guidance ensures that the document clearly articulates your intentions and complies with state laws. Legal professionals can provide valuable advice on the most suitable type of POA for your needs and help navigate potential pitfalls.

At Carpenter & Lewis PLLC, we specialize in business and estate law so we can deliver the best guidance possible. Get in touch with us today, and let’s start planning your future together.