Are you wondering what a power of attorney is and whether you need one? This legal document can be extremely important for those who need to appoint another individual to act on their behalf to make decisions and handle their affairs.
To learn more about what a power of attorney is and some reasons you may need one, keep reading. In this guide, we'll go over some key things you should know about a power of attorney form and how it can protect you when you or a loved one might need it.
Why Have a Power of Attorney?
When it comes to a power of attorney, the individual authorizes the person to act is referred to as the principal. And the individual to whom authority is granted is referred to as the agent or attorney-in-fact. A power of attorney is only in effect as long as the principal is living. It takes effect if the principal is mentally capable when they sign it. It's important to note that just because you have a power of attorney, it does not mean that you lose control of your assets and decisions
If a power of attorney is durable, it remains in effect if you become incapacitated due to illness or an accident. Furthermore, if you become mentally unable to handle your financial, legal, and personal affairs, your agent can take care of them on your behalf. You can use a power of attorney to nominate an agent to handle and represent you in your matters for multiple reasons.
Roles of a Power of Attorney
There are three main reasons people get a power of attorney. Many opt for a medical power of attorney, or health care surrogate, to make medical decisions on their behalf if necessary. No other individual will have control over the principal's medical decisions other than the agent named in the power of attorney.
A general power of attorney can be used to allow the attorney-in-fact to make financial and legal decisions on the principal's behalf, or many other decisions for someone without the mental capacity to do so themselves. Templates can be created for purposes such as paying bills, managing properties, or handling stocks and bonds on the principal's behalf. Nearly any transaction or matter can be delegated to an agent given the principal's permission.
Often, a power of attorney is enacted in case of mental issues such as dementia or senility; a power of attorney must be prepared before these issues arise. A power of attorney can help avoid financial and familial issues, especially when the principal has proper planning in place.
Do You Need a Power of Attorney?
As you can see, a power of attorney can play a key role in one's life when one is no longer mentally capable of controlling and managing one's affairs. Having a good agent will allow you to put your affairs in the hands of someone you trust. This can peace of mind knowing you have a reliable individual to step in when you need some extra help. Do you need a power of attorney? If so, contact Eric Beutel today.
Do you need a power of attorney? If so, contact Eric Beutel today.