A Power of Attorney (POA) is a vital legal document that allows you to designate someone to act on your behalf in financial, medical, or personal matters. Whether you’re planning for the future or need immediate assistance, understanding how to create a POA is essential. This guide for Creating a Power of Attorney: What You Need to Know will walk you through the key aspects of creating one.
What Is a Power of Attorney?
A Power of Attorney is a legal tool that grants another person, known as the “agent” or “attorney-in-fact,” the authority to make decisions on your behalf. The person granting this authority is referred to as the “principal.”
There are several types of POAs:
- General Power of Attorney: Grants broad powers to the agent.
- Special or Limited Power of Attorney: Restricts the agent’s authority to specific tasks or situations.
- Durable Power of Attorney: Remains effective if the principal becomes incapacitated.
- Medical Power of Attorney: Authorizes the agent to make healthcare decisions for the principal.
- Springing Power of Attorney: Becomes effective only upon the occurrence of a specified event, such as the principal’s incapacitation.
Steps to Create a Power of Attorney
- Determine Your Needs: Decide what type of POA you need based on the scope of authority and duration.
- Choose Your Agent: Select a trustworthy individual who understands your wishes and can act responsibly on your behalf.
- Draft the Document: Work with an attorney or use a state-specific template to ensure the POA complies with local laws. Clearly outline the powers you are granting and any limitations.
- Sign and Notarize: Most states require the POA to be signed in the presence of a notary public. Some states also require witnesses.
- Distribute Copies: Provide copies of the POA to your agent, financial institutions, healthcare providers, and other relevant parties.
Key Considerations
- Revocation: A POA can be revoked at any time as long as the principal is mentally competent. To revoke, notify the agent and any institutions relying on the document.
- State Laws: POA requirements vary by state, so ensure your document adheres to local regulations.
- Agent Accountability: While agents are expected to act in the principal’s best interest, mismanagement can occur. Regular oversight and clear communication are essential.
- Incapacity Planning: A Durable POA is especially useful for planning for potential future incapacity, such as in cases of illness or aging.
When to Seek Legal Advice
Although it is possible to create a POA on your own, consulting with an attorney ensures the document is comprehensive and legally binding. Complex situations, such as managing a business or handling significant assets, often require professional guidance. Let Jacobson Family Law be the attorneys you trust with your estate planning needs. Contact Jacobson Family Law to schedule your consultation with one of our Maryland estate planning attorneys today at 443-741-1147 or at by scheduling a consultation online.
