Power of Attorney

Whether or not you need a Power of Attorney depends upon your ability to reason and your ability to communicate your rationale. For example, if one should become temporarily or permanently disabled or is somehow incapacitated this can strongly suggest a need for a Power of Attorney.

If incapacitated, one may be incapable of carrying out one's financial affairs and may not have the mental ability to authorize a Power of Attorney. In such an instance it would be wise to have Power of Attorney delegated to one or more other individuals.

There are different types of Power of Attorney. One type may be quite broad and include all the acts that an individual might carry out by his or herself relating to their estate. Alternatively, the individual might choose to limit the duration and range of Power of Attorney.

To illustrate: the Power of Attorney might limit the client's attorney to certain duties pertaining to the sale of property or to the client's affairs with his financial institution. When Power of Attorney is granted, the individual is entrusting certain aspects of his or her livelihood to another individual.

Hence, it stands to reason that Power of Attorney should be granted to attorneys that are undoubtedly trustworthy, capable and wholly familiar with the individual's estate so that sound objective decisions can be reached.

Some people may choose to grant Power of Attorney to multiple individuals and make them act together. Although this may promote inexpedience, the individual may have more peace of mind knowing that the likelihood of an abuse of power taking place is greatly reduced.

The Power of Attorney will commence on the date it is signed or on another date specified by the client. However, if Power of Attorney is to be granted when the individual is mentally incapacitated or physically disabled, then the definition of 'disabled' and 'incapacitated' must be specified precisely beforehand.

Power of Attorney will cease activity at the end of a specific duration, should one have been specified. If Power of Attorney was not set to run for a specific duration, then the client has the ability to revoke it through a written notice. This written notice of revocation should also be given to any and all third parties; otherwise the client may remain bound by the attorney's actions even once revocation has ceased.

Adapted from: It's Legal! www.itslegal.com