When you are engaged in estate planning, the topic of Power of Attorney (POA) is likely to come up. At The Whipple Law Group, we include POA documents and Health Care Directives in our flat estate planning price. We do this because of the importance these documents hold and the vital role they can play in times of crisis.
What is Power of Attorney (POA)?
The Power of Attorney document allows you to designate someone you trust to act on your behalf. You decide who the designated person or persons will be and the extent of their decision-making power. When drafted, and executed, properly the POA document provides legal authority to take action. These actions, helpful to you, may relate to finances, health care, and minor children.
When is the Power of Attorney Activated?
The Power of Attorney may be effective immediately or upon a specified event.
Immediate Power of Attorney
The Immediate Power of Attorney allows your designee agent the authority to act on your behalf right away. For instance, you may travel out of country and want your brother to pay your bills while you are gone. An immediate Power of Attorney, properly drafted and executed, will allow your brother to start doing so without any delay. In other cases, an elderly parent may create a Power of Attorney to allow a family member to assist them when visiting a doctor, picking up prescriptions, or paying bills. It is important that this person consult with the estate planning attorney in order to properly document their actions in assisting their parent.
Contingent Power of Attorney
The Contingent or “springing” Power of Attorney differs from the Immediate Power of Attorney document in that decision making power is withheld or hibernating until a certain event occurs. Often, the triggering event is some type of temporary incapacitation, for example surgery with anesthesia. While you are temporarily incapacitated the designated person can help make decisions for you until you recover.
We often hear, “but my spouse will take care of those things.” While this may be true, in our business we see where things happen that are not usually contemplated. For instance, if your spouse is in the same vehicle that you were in when the accident requiring surgery occurred, they would not be available to make decisions. In fact, they may be needing someone to serve in this capacity themselves.
At the Whipple Law Group, we always suggest to our clients that they consider a first, second and third choice in terms of their power of attorney designee(s). This way if someone cannot serve, an alternative of your choice is available.
