Important Reasons Why You Need a Power of Attorney
A power of attorney is a legal document that allows you to appoint someone to act as your agent or representative to handle certain tasks on your behalf. This document is put in place while you are still alive, but it becomes effective only when certain conditions are met. Many people assume that a power of attorney remains effective even after the person who executed it has passed away. However, this is not the case. A power of attorney becomes void upon the death of the person who created it, as the agent can no longer act on their behalf. There are two types of power of attorney: durable and springing. A durable power of attorney goes into effect as soon as it is executed, and it remains in effect even if you become incapacitated. This means that your agent can continue to act on your behalf, even if you are unable to make decisions for yourself. On the other hand, a springing power of attorney only goes into effect when certain conditions are met, typically when you become incapacitated. This means that your agent cannot act on your behalf until you are no longer able to make decisions for yourself. It's important to note that both durable and springing powers of attorney are typically included in estate plans. Estate planning is the process of preparing for the management and distribution of your assets after you pass away or become incapacitated. In addition to powers of attorney, estate plans may include wills, trusts, and other legal documents. In conclusion, a power of attorney is an essential legal document that can help ensure that your affairs are managed properly if you become incapacitated or unavailable. It's important to understand the differences between durable and springing powers of attorney and to include them in your estate planning process. If you need assistance with estate planning or any other legal matters, it's always a good idea to consult with a qualified attorney.