What Is The Purpose Of the Power Of Attorney & Should Everyone Have One?

A power of attorney is a legal action in which the owner of any real estate can designate any trustworthy person, i.e., agent or attorney-in-fact, to act on his behalf. A power of attorney allows the agent to make a set of decisions that could be broader or specific to some details. The certain term “Power of attorney” could be used to refer to the person selected to act this way.

 

Types of Power of Attorneys

Several types of power of attorneys can be chosen by the owner of real estate based on the responsibilities and requirements to delegate.

  • Conventional power of attorney form
  • A durable power of attorney form
  • Springing power of attorney form
  • The medical power of attorney form

 

The Process to get a Power of Attorney

The first thing in making a Power of attorney is to find a person on whom you can rely in handling your affairs when you are not around. After that, you can specify the agent’s tasks on your behalf and in what circumstances. Such as, there is an option to establish a power of attorney when you are not capable of managing your affairs by your own hands. Some cases needed to be solved immediately, but you are not at that place, so your power of attorney can serve this task on your behalf.

Some Power of Attorneys have limited power, such as Some POAs can only make decisions about real estate closing in some other city on your behalf. At the same time, some Power of attorneys can manage all your affairs without any limitations. It could only be possible with your desire and demand.

 

Should everyone have a power of attorney?

There are certain reasons to have a desire for power of attorney for the individual having age more than 18 years. For example, if a person works in the military and has to move far away from his properties and real estate, he might create a power of attorney. The POA is allowed to take several important decisions on his behalf. It could also be required if someone is incapacitated.

Incapacity is not the only issue where a person wishes to create a power of attorney. There could be several other reasons. Expatriates workers and their families often create a Power of attorney in California while dealing with overseas works.

The younger ones in the family eager to travel a lot at distant places can make a Power of Attorney who can manage their affairs behind them, mostly when they have no spouse to manage these affairs. In most cases, the power of attorneys is established for a person who is elderly and facing some serious and long-term health crises.

Also, some individuals are unable to make decisions for their assets on their own due to some mental illness and physical inabilities, and they should have the power of attorneys to do that.

The agent on your behalf selected by you in power of attorney is called upon to make financial decisions that confirm your benefits and well-being. If there is a necessity to pay bills, sell assets to pay medical bills, and make any decision regarding your Medicaid planning, Power of Attorney always makes the best decisions for you.

Similarly, a Power of attorney can deal to carry out any banking transactions, real estate planning, managing any government and retirement benefits, and medical billings.

 

If you don’t have a Power of Attorney?

The purpose of the power of attorney is not just reassuring, and they can become the main agents to secure your financial and real estate interests, your medical care, and the manner of dying. If you get incapacitated without having a Power of attorney, your closed ones may suffer to deal with costly and time-consuming delays.

The owner and the demanding person must have to set power of attorney by him. The family cannot set up any power of attorney when they feel the need for POA in case that their elderly relative becomes unable to manage their tasks. In such cases, the court will get the authority to select a guardian or conservator for that person and family. The individual itself does not have any control over the appointed person. In some states like California, the guardian must submit a bond and file a verified inventory and financial accounting of that individual’s relevant real estate. This whole procedure could become more costly and complicated along will publicly open. So it is better to have a Power of Attorney before such conditions overwhelm.

 

Who can become your power of attorney?

The person you chose as your Power of Attorney must be someone you can trust without any hesitation. The way you have prepared the power of attorney documents, the agent will have authority to make decisions about your health, home, financial affairs, household affairs, business accounts, and personal belongings.

You must contact every institution where you are dealing so that your power of attorney will be honored there. Some institutions and sectors have their forms to complete for assurance regarding power of attorney. Some banks and financial institutions have their forms to complete.

You can select more than one agent to work together in making decisions on your behalf. However, one must learn that the criteria of establishing power of attorney are not the same always. You can also choose a successor agent who takes care of the original agent to not serve in that capacity when the need arises.

 

Bottom Line

Finding someone to hold your power of attorney will make you feel comfortable. You will plan your future in peace that all your work will continue even if you are incapable of doing these things independently.

These decisions would give you more power and control over the tasks. If you move to another place far away from your real estate, your selected power of attorney will remain effective. A power of attorney will expire right after your death. Your agent will no longer be authorized to take your decision after your death.