What is the Role of a Power of Attorney?
A power of attorney is a written document that designates an agent to act on your behalf regarding financial and/or medical decisions. You must specify who will act as your agent and what powers you give them. While you must be mentally competent at the time of signing your power of attorney, if you become mentally incompetent, the power of attorney will remain in effect, if it is “Durable”.
Whether you are just beginning planning or are interested in revising your current estate plan, our PA powers of attorney lawyers are available to discuss any of your concerns.
What is a Power of Attorney?
A power of attorney is a legal document that specifies a competent adult to handle your affairs. You can indicate the matters in which you are giving your agent, also known as an attorney-in-fact, decision-making power. You can give your agent broad or only limited authority, meaning that the individual would have the authority to act in your place in certain situations. Two common examples are selling a house or signing loan papers.
As you age, it is important to have a healthcare and financial power of attorney in place in the event that you need someone to act on your behalf. A healthcare power of attorney names a person to make medical decisions on your behalf in the event that you are incapacitated or incompetent. A financial power of attorney gives a person the power to handle your finances, which may be broad in scope, including paying bills, handling investments, or filing your taxes. If the scope of your agent’s authority is broad, then the language within the document must reflect that.
When Does a Power of Attorney Take Effect?
You can specify when a power of attorney takes effect. Some people choose to have a healthcare power of attorney or financial power of attorney take effect upon their incapacitation or incompetency. This is known as a “springing clause,” since the document will spring into action upon the occurrence of a certain event.
While this may seem appealing, a springing power of attorney can create issues since your agent must verify your incapacity or disability with a physician before being granted any decision-making authority. At Cunningham, Chernicoff & Warshawsky, P.C., we may suggest that you specify how to trigger your power of attorney, taking effect that does not require a physician’s evaluation. If you choose not to indicate when (or the happening of an event to trigger it), the power of attorney takes hold, then it will automatically take effect upon execution.
What Does it Mean for a Power of Attorney to Be “Durable”?
According to Pennsylvania law, all powers of attorney executed on or after December 16, 1992, in the Commonwealth of Pennsylvania are durable. A document that is durable will remain in effect despite a person’s incapacitation or incompetency.
Why Do I Need a Lawyer to Draft a Power of Attorney?
While drafting a power of attorney may seem simple, you must have the required verbiage for it to be legally valid. Estate planning law is complicated, and by drafting the document on your own, you are bound to make mistakes that will likely only be discovered when you need to utilize it.
At Cunningham, Chernicoff & Warshawsky, P.C., our PA estate planning lawyers are dedicated to helping you name the appropriate agents to fulfill your desires in the event that you are unable to do so. When you hire us to handle your estate planning, we will explain the different approaches available so that when the time comes, everyone will be on the same page. By planning early, you can help your loved ones avoid unnecessary stress later on.
Speak with Our PA Power of Attorney Lawyers Today
While many of us think of planning for when we are gone, it is important to plan in the event that you fall ill and are unable to take care of your own matters. At Cunningham, Chernicoff & Warshawsky, P.C., our PA powers of attorney lawyers believe that planning for the unknown is key to protecting your finances and your overall well-being. To learn what services we provide, contact us online or by phone to schedule your free consultation.