For those who have someone in your life that will not be able to manage their affairs, you can help them set up a power of attorney so you can handle their affairs. In case you are not familiar with a power of attorney, which is also more known as POA in short, it refers to a legal document that allows you grant another person the authority to make important decisions on your behalf. The one who is in charge of writing the POA is called the principal or grantor. The name is used before they are granting someone permission to act on their behalf. As for the one who grants permission to, they are called their agent, proxy, or attorney-in-fact.
If you want to legally act on the behalf of someone else, it is a must for them to create a power of attorney and you must be named as their agent. To make their power of attorney or POA valid, it is a must for them to grant you this power of their own free will. They have the right to decide the person that they want as their agent. Not only that, they also have the right to decide how much power they give to the agent. If they choose you as the agent, it means they can decide how much power they give to you. In case the grantor is pressured or coerced into the decisions that they make, the power of attorney or POA will be considered invalid in court. In addition, it is also a must for the grantor to be of sound mind. It means they can make important decisions and understand their impact. Due to this fact, it is better for you to help them make their power of attorney or POA while they are still healthy and competent.
If you are wondering if you can get power or attorney or POA for someone who is incapacitated, the sad news is that there is no way for you to be able to do that. Once again, there is no way that you can do to be the agent of someone that is incapacitated, for example, if they have dementia. Instead of getting power of attorney or POA of that individual, you can gain legal responsibility for them by becoming their conservator or adult guardian.
There are a few basic steps that you can do in order to help a loved one make their power of attorney or POA and name you as their agent. These steps include:
- Help the grantor decide which kind of power of attorney or POA to make
Power of attorney or POA varies. There are some different kinds of them. Every single of them covers a specific aspect of the life of the grantor. Medical POAs and financial POAs are the two of the most common ones. Medical POAs allow you as the agent to make healthcare decisions for the grantor. As for the financial POAs, they give the agent like you control over financial and real estate decisions.
- Decide on a durable or non-durable power of attorney or POA
If the grantor is incapacitated, your authority to act as their agent will end with a regular POA. This kind of thing can happen if they suffer from a degenerative disease like dementia or if they fall into a coma. If the POA is made durable by the grantor, you are allowed to act on their behalf even if they are incapacitated. These kinds of POAs are used for estate-planning purposes to plan for a time the grantor might not be able to handle their own affairs.
- Discuss the thing wanted by the grantor to give to the agent
After deciding the kind of POA to use, the grantor has to choose which responsibilities to give their agent. If you are their agent, you can ask a few questions to the grantor, such as:
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- What financial and medical decisions do you want me to make on your behalf?
- If you were in the hospital, how would you want me to pay your healthcare bills?
- Would you want to try risky or expensive medical procedures?
- Would you ever want to be on life support?
- How do you want me to maintain your real estate property, like your home, while you’re away?
- Do you want me to manage your investment accounts?
- Get the correct power of attorney or POA form
The POA form can be obtained for free in some states. Aside from that, the grantor can also create a durable financial POA or a living will by using free online software such as FreeWill.
- Have the grantor complete the form and sign and witness it according to the laws in the state
Sometimes, signing POA should be done in front of a notary. Depending on the state, it may also require some witnesses.
- Have the grantor keep their POA forms in a safe place and give a copy to interested parties
As the agent of the grantor, make sure to keep the copy of the POA in the safe place. This document is the proof that you have the authority to act on behalf of the grantor. Besides, the copy should also be handed to the third parties such as banks and hospitals by the grantor.
How do you use POA to manage the affairs of someone?
When you need to do something for the grantor, just show the POA document to prove that you have authority. Talking about authority, you should know that there are several things that you cannot do, including:
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- Making changes to the last will and testament of the grantor
- Voting on the behalf of the grantor
- Entering into a marriage on the behalf of the grantor
- Acting against the best interests of the grantor
Keep in mind that every kind of power of attorney or POA, including durable POAs, ends when the grantor leaves the world forever and no longer has any legal authority. In this case, your authority as an agent also comes to an end. If one of your family members wants to make a plant for their property after they pass away, they are suggested to make a last will and testament or a living trust.
A bookworm and researcher especially related to law and citizenship education. I spend time every day in front of the internet and the campus library.
