A Power of Attorney Acts When You Can’t

Article by BPBS attorney David Lefton, 513 533-2034

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THE POWER OF ATTORNEY

Everyone has day-to-day affairs to manage, such as paying the bills, banking, and other routine activities of modern life. Many people think that in the event of an incapacitating illness or accident, their spouse, parent, or adult child can automatically and legally act for them. Unfortunately, this is often wrong.

A Power of Attorney is a written legal document in which you appoint someone else to act as your agent on your behalf. In general, your agent can take any action or perform any legal function which you have a legal right to perform. A Power of Attorney can grant unlimited powers to the agent, or it can be very specific. It can grant one person certain specific powers, and grant different powers to someone else. You can execute one Power of Attorney, or as many as you need.

Typically, a spouse, close family member, or a trusted friend is named as agent in a Power of Attorney, since any of the actions taken by the agent are legally binding on the principal. The agent may have the power to spend all of your money! So the agent must be chosen with care, and the powers granted to that agent need to be carefully considered.

Failing to have a Power of Attorney can cause extreme difficulties when someone is stricken with an illness or injury rendering him or her unable to make decisions or to manage financial or medical affairs. There may be no one who can access accounts, financial information, or take other necessary actions, even leaving medical decisions to strangers.

Like most other things, once a serious problem occurs, it is generally too late. Advanced preparation with a Power of Attorney can save you and your family significant cost and expense.

What happens if you do not have a Power of Attorney? You leave your decisions to be made by someone else - perhaps a stranger appointed by a court. Each state has a legal procedure to provide for the appointment of a legal guardian for someone who becomes incapacitated. The procedure normally requires a formal court proceeding and can be very expensive. It requires lawyers to prepare and file necessary documents with the court and doctors to provide medical testimony regarding the person who is incapacitated.

That process can be slow, costly, and frustrating for the entire family. A Power of Attorney helps your family avoid all of those problems during a time that already may be difficult.

There are a few basic Power of Attorney forms that most everyone should have.

Call your BPBS attorney if you have questions. We can get you started.