Many people envision a Power of Attorney (POA) as a sort of death-bed request, or a document which appoints an intercessor so that you can avoid unnecessary or unwanted medical interventions. A POA is, basically, an official appointment by you of an individual (called an “agent” or “attorney-in-fact”) to manage your affairs should you be unable to do so. It can involve medical intervention choices, but not necessarily. There are three main types of POAs:
1. General Power of Attorney, which gives your agent the authority to act on your behalf in a broad range of situations.
2. Special Power of Attorney, which gives your agent the authority to act in specifically defined situations.
3. Medical or Health Care Power of Attorney, which grants your agent the authority to make decisions on your behalf regarding medical interventions or other health care.
Any type of POA can be made “durable” by adding language that makes it remain active for the duration of your life, and in the event that you become incapacitated it will automatically “kick in.” In either a General or Special POA you can appoint an agent to manage your assets and other financial matters. POAs are easily tailored to meet the needs of the individual, and you can have multiple POAs. The question is, who needs them?
The short answer is, everyone should at least consider having a POA. Should you become incapacitated without having a POA, a judge will have to appoint an agent to manage your affairs; agent responsibilities do not automatically default to your closest relative. A court-appointed agent may or may not handle matters as you would wish, which can cause problems for your friends and family.
A POA will give you peace of mind, and assure you and your family that your personal matters will be taken care of without complication or controversy. Looking into a POA when you are still young may seem irrelevant, but it isn’t – you can take the time to give careful consideration to whom you will appoint as your agent, and communicate with him or her about the details of your decisions. Some experts believe that having a POA is actually more important than having a will.
Most attorneys will include a POA as part of an overall estate plan, or, if you choose not to work with an attorney, check with your local hospital. Many of them have free POA forms that you can pick up, because it saves hospitals a great deal of trouble if healthy, competent individuals draft a POA. And your family will thank you.
