As you go through life, there may be a time when you cannot make decisions for yourself, either temporarily or permanently. In this situation, a Power of Attorney can be extremely helpful.
What is a Power of Attorney (POA)?
A Power of Attorney (POA) is a legally binding document that appoints another party to act on your behalf (you would be known as the “Principal”). This appointed individual, known as an “Agent” or “Attorney-in-Fact”, is given authority to make decisions for you, which can include handling medical treatment, managing finances, or running a business in your name. The authority provided to an Agent can be broad or narrow and can be put in place for short-term or long-term purposes.
How to Choose the Right Attorney to Draft your Power of Attorney
Choosing the right attorney to draft your Power of Attorney is just as important as the document’s provisions. A Power of Attorney involves significant trust and authority, so it is critical to find a drafting attorney that is knowledgeable, experienced, and trustworthy.
One of the first steps you can take when searching for an attorney is to ask for referrals from your trusted friends, family, or colleagues. Seek recommendations from people who have had positive experiences. To ensure that your Power of Attorney will be properly drafted, and enforceable, choose a drafting attorney in your state of residence.
What to Do After Creating a Power of Attorney
It is essential to keep the POA up-to-date and ensure that it accurately reflects your current wishes and preferences. If circumstances change, such as a change in your health, state of residence, or marital status, it may be necessary to make updates to your document.
Questions to Ask During Your Initial Consultation
Before your attorney consultation, it is important for you to consider:
What kinds of authority will you grant to your Agent?
- Will the powers be broad to cover general financial matters? Or will they be narrow and specific to a project or task that you are unable to handle personally?
Who should be appointed as your POA Agent?
- The person you choose will have significant authority over your finances, healthcare, and other important matters.
How long should the POA be in effect?
- Do you want it to last indefinitely or for a specific period?
During your attorney consultation, it may be helpful to ask:
- How will the Power of Attorney affect my overall estate plan?
- How does your fee structure work and what is the estimated cost of representation?
- Do you require retainer fees or offer payment plans for legal services?
CEFCU Wealth Management is a marketing name used by CEFCU. Trust and Investment Services provided by Members Trust Company, a federal thrift regulated by the Office of the Comptroller of the Currency. Trust and Investment products are not federally insured, are not obligations of or guaranteed by the credit union or any affiliated entity, and involve investment risks, including the possible loss of principal. This is for informational purposes only and is not intended to provide legal or tax advice regarding your situation. For legal or tax advice, please consult your attorney and/or accountant.
