Granting someone power of attorney (POA) does not necessarily mean handing them unlimited control over your finances or health. While this legal document allows you to appoint an agent or attorney-in-fact to make decisions on your behalf, you can tailor it to your specific needs.
The authority of a power of attorney depends on how it’s drafted. For instance, a general POA grants broad powers, allowing your agent to handle your finances, buy or sell property and even manage investments. You can be more specific with a limited POA if you want to restrict your agent to certain tasks. A health care POA gives someone the legal authority to make medical decisions on your behalf if you become incapacitated.
There are legal limits
Even with a POA, an agent cannot act outside the powers granted. For example, they cannot change your will, and they owe you a fiduciary duty. This means that they must always act in your best interests when acting as your agent.
Who needs a POA?
A POA is not just for the elderly or people battling terminal illnesses. Think of it as a safety net if something unexpected happens and you need someone to step in for you. It can help ensure that your affairs are handled according to your wishes, even if you can’t communicate due to incapacity.
A carefully drafted POA can prevent confusion, disputes or abuse. Equally important is the person you choose to act as your agent. You want someone responsible, reliable and trustworthy who you believe will follow your instructions to the letter. Getting experienced legal assistance can help you understand your options and create a POA that will protect your interests when the time comes.