Power of Attorney (POA) is a binding document that appoints someone to manage your financial, medical, or property affairs on your behalf. The person allowed to act on your behalf as a “power of attorney.” The document delegated authority to the agent to make a limited or broad range of decisions.
A Power of Attorney delegates legal authority to one or more people you trust, known as your “attorneys.” This can happen if you’ve been in the hospital for a while or grown ill and cannot make decisions for yourself, such as if you have dementia or have had a stroke.
Suppose you have a power of attorney and cannot act on your behalf due to mental or physical Incapacity. In that case, your attorney is of great importance to make financial decisions on your behalf to ensure your safety and care.
POA is of great significance at essential responsibilities like healthcare billing, retirement benefits, government benefits, real estate decisions, banking transactions etc.
Someone who has your Power of Attorney cannot amend or write your will on your behalf. Yet, that person has the right to change your assets and thus affect how your will operates in practice. So be sure to discuss your preferences with your power of attorney before making any assignments.
A POA is essential for various reasons, not the least of which is Incapacity. When a person is elderly or has a significant, long-term health problem, POAs are most created. Younger people who travel may get a POA to manage their affairs while away, especially if they do not have a partner.
Following are the simple steps to get a power of attorney
- Choose someone you can trust to handle your affairs on your behalf.
- It would help if you decided what the agent may and cannot do on your behalf and under what conditions.
- Decide if you want restrictions at certain places for a power of attorney.
- Engage a lawyer or use Koha Power of Attorney generator
- Complete the form according to the instructions
- The principal must be of sound mind when the agreement is created
- The POA can be cancelled or revoked by either deleting the old document and creating a new one or creating a formal revocation document that notifies all parties involved that the POA is no longer valid.
Choosing someone to be your power of attorney and stating that it will operate even if you lose capacity guarantees that you have a strategy for managing your personal and financial affairs if you become unable to do it by yourself. The agent can be given limited or complete authority to act on behalf of the principal in financial, property, and health matters. When a person cannot make their own decisions, a POA is commonly used.