Whether you are getting married, planning for the future or simply thinking about aging, you may be wondering how to establish a power of attorney. A power of attorney (POA) is a legal document that allows someone else to make financial and medical decisions on your behalf, in the event you are unable to do so yourself.
A POA can be very important and will provide peace of mind if you ever become unable to make your own decisions due to an illness or accident. But, you should take some precautions when establishing your POA so that your wishes are respected.
1. Decide on who you will appoint as your agent and what type of powers they will have to execute.
A power of attorney will give your agent the authority to make decisions on your behalf, such as deciding what kind of insurance you want to purchase or how much to pay for medical care.
2. Choose your agent carefully and ensure they are trustworthy before signing the paperwork.
It is also a good idea to meet with the person who will be executing the power of attorney so that you can make sure you have a shared understanding about the terms and conditions. If you have concerns, it is a good idea to consult an estate planning lawyer so that you can be fully informed and comfortable with the process.
3. Complete and sign your POA in front of a notary or witness.
Creating a power of attorney is an important step in the estate planning process, and it’s easy to do. You can find free, simple, downloadable forms online or from your attorney. Once you’ve chosen your agent, it’s time to fill out the documents and sign them in front of a notary or other legally qualified witness.
4. Be vigilant about the person you appoint as your agent, and be aware that they have access to your bank and other financial assets.
A power of attorney can be misused by people who are not fully trusted or are looking to steal your assets. If you do not fully trust your agent, it is a good idea to remove them from the power of attorney and appoint someone else.
5. Share the names and addresses of your agents with friends, family and other medical professionals who might be involved in your care so that they are aware of who is handling your affairs.
6. Check your agent’s name against the IRS database of people who have power of attorney in New York.
Having a power of attorney is a great way to prepare for the possibility that you may be incapacitated, and it’s a good idea to have an agent that lives near you so they can come to your aid when you are ill.
There are several different types of powers of attorney to choose from, and each one is unique to the needs and preferences of the principal. You should speak with your estate planning lawyer about what kind of power of attorney is best suited to you and your situation.
