Power of Attorney: What is it and How to be a Great One

As families grow older, it is important to prepare for the future and make provisions for medical emergencies or financial difficulties. One way to do this is by appointing a Power of Attorney (POA), a legal document that grants someone the authority to act on your behalf in certain situations. Whether you are appointing someone as your POA or being appointed as one, it is important to understand what it is and how to be a great one. In this blog post, we will discuss the basics of POA, different types of POAs, and how you can be an effective POA for your loved one.

What is a Power of Attorney (POA)?

A Power of Attorney is a legal document that allows one person (the principal) to authorize another person (the agent or attorney-in-fact) to make decisions or take actions on their behalf. With a POA, you can grant someone the power to handle your finances, make medical decisions, or manage your affairs in your absence. POAs can be limited in scope or broad enough to cover all of your needs. They can be used for a specified period or until the principal revokes it.

What are the different types of POAs?

There are many types of POAs, but the most common ones are:

General POA This allows the agent to act on behalf of the principal in all the legal and financial matters as specified in the POA. This type of POA is usually used for short-term or one-off needs.

Limited POA This grants authority to the agent only for a specific purpose or duration of time. For example, a principal might grant a limited POA to an agent to sell their property when they are abroad.

Durable POA This type of POA remains in effect even in the event that the principal becomes incapacitated or unable to handle their affairs. This type of POA is useful in medical emergencies where the principal is unable to make decisions for themselves.

How can you be a great POA?
Being appointed as someone’s POA is a big responsibility, and it is important to take it seriously. Here are some tips to be a great POA for your loved one:

1. Understand your role As a POA, you are responsible for acting in the best interest of your loved one. You have a legal obligation to act in good faith and make decisions that align with their wishes.
2. Communicate effectively Keep your loved one informed of any decisions you make on their behalf. It is also important to communicate with other family members and professionals involved in their care.
3. Keep accurate records Keep detailed records of all transactions, decisions, and communications related to your role as a POA. This will help you and your loved one stay organized and prevent any misunderstandings or conflicts.
4. Seek help if needed It is okay to ask for help or seek advice from a lawyer or financial advisor if you are unsure about the best path forward.

Conclusion:
A Power of Attorney is a crucial tool for families to prepare for emergencies and ensure their loved one’s wishes are respected. By understanding what it is and how to be a great POA, family members can better help their loved ones when they need them the most. Remember, being a great POA means understanding your role, communicating effectively, keeping accurate records and seeking help when needed. As family members, we all have a responsibility to care for our loved ones, and being a great POA is just one way we can do that.