Estate Planning Law – Power Of Attorney 101
A power of attorney is another document that would be a part of your estate plan. A power of attorney grants power or authority to an agent or an attorney-in-fact to act on your behalf in the event you become incapacitated or unable to act on your own.
Similar to appointing an executor in a will or guardian for your children, it is really important that you give careful consideration to who you are giving this power to because it is a really big undertaking that this person now has. They have authority to act on your behalf; they are going to make determinations to your assets to how things are going to be done when you are unable to do so. It is really important that you trust this person unequivocally.
Additionally an important thing to know about power of attorney is that it’s revocable so you can make a power of attorney and revoke it during your lifetime, you can give it to someone else. Also, it can be limited which really important. When you give someone power of attorney, it is not as if you throw your hands and now that person is in-charge of everything in your life. You can give a limited power for that person just to act on certain things. Someone can have power of attorney just to carry out litigation. Someone can have power of attorney to close a real estate transaction. There are all sorts of things and they can be limited to what you need to have done.