A power of attorney is a legal document that creates an agency relationship between the principal (the person granting the power) and the agent (the person receiving the power). POAs can sometimes refer to the agent as the "attorney-in-fact." General rules of agency apply to the rights and duties among the principal, agent, and third parties who rely on the power of attorney. With a properly drafted power of attorney document, a principal and agent can deal with a future incapacity as well as other of life's unforeseen events.
A well-drafted POA can be used by the agent to help the principal pay bills and make medical decisions if the principal becomes ill and unable to handle these matters.
There are several types of Powers of Attorney. Financial and Health Care Powers of Attorney are two types of POAs that are utilized in estate planning. Additionally, there are general verse limited powers of attorney.
Our office will make sure that you understand the powers that you are granting and the duties that the agent has toward the principal. Please contact us if you are interested in learning more about why POAs are important.