What exactly is a Power of Attorney? What does a Power of Attorney do? I read an excellent article this week on MarketWatch that inspired this post.
From a practical perspective, a Power of Attorney is a legal document that allows you to name (choose) “back-ups” to speak for you about your health and handle your financial matters + if you are unable to do so. A power of attorney is accepted in all states, but the rules and requirements differ from state to state.
A Power of Attorney must be drafted while someone is mentally competent and is in effect only when you’re living.
IF you’ve been named as a Power of Attorney, it’s important to know when it goes into effect. The power may give temporary or permanent authority to act on your behalf. The power may take effect immediately, or often times it goes into effect after determination that you are unable to act for yourself due to mental or physical disability. The power of attorney document may be limited to a particular activity, such as closing the sale of your home, or be general in its application.
If you’ve been named as someone’s Power of Attorney what do you do and how do you do it? This gets tricky, as each state, organization, business and/or entity has rules or guidelines they apply. The last thing we need is a hassle, yet sadly there are people who try to take advantage of others and protection of and for you can conflict with good people trying to do the right thing.
The American Bar Association provides general information for people acting as a Power of Attorney. The following is an excerpt from their website.
“The person named in a power of attorney to act on your behalf is commonly referred to as your “agent” or “attorney-in-fact.” With a valid power of attorney, your agent can take any action permitted in the document.
Often your agent must present the actual document to invoke the power. For example, if another person is acting on your behalf to sell an automobile, the motor vehicles department generally will require that the power of attorney be presented before your agent’s authority to sign the title will be honored.
Similarly, an agent who signs documents to buy or sell real property on your behalf must present the power of attorney to the title company. For bank accounts the agent has to present the power of attorney to a broker or banker to effect the sale of securities or opening and closing bank accounts. However, your agent generally should not need to present the power of attorney when signing checks for you.”
Real Life Examples
Using a Power of Attorney as an “agent” can require a great deal of patience. Hospitals, Financial Institutions, Real Estate professionals, Medicare+ all have in-house procedures. Often, this is to protect against elder abuse (that’s a topic I’ll save for another day).
Frequently, you may discover that your power of attorney is initially refused by a bank, investment firm, medical group, hospital, or other institution. This is normal. Many of these groups have their own protocols for processing and approving a power of attorney. For example, some institutions may require that you fill out their own specific power of attorney forms prior to allowing an agent from making any decisions on behalf of the principal.
Many times, these additional forms may be all that is required. In more complicated situations, you may need to seek help from a trust and probate estate litigation attorney to help you through the process of proving the power of attorney. An attorney should be able to help elevate and resolve the situation with the institution.
I’ve always kept a PDF version of the Power of Attorney on my computer in case I’m long-distance and am asked to prove I am who I am and prove my legal authority via email. For those who know me, I’m a communicator 😉 It’s been helpful in the past for me to contact the parties in advance to ask what they require and/or if I may email my PDF for them to review to make sure I had what they required.
What Questions Do You Have?
Let’s make sure you have an understanding of what’s at risk and what’s to gain. Reach out to discuss anything that seems “fuzzy” by email: Lynn@thelivingplanner.com or if you’d prefer to schedule a Complimentary Discovery Call to discuss your particulars, let’s do it!
My main website is: https://thelivingplanner.com. If you’d like to try a DIY approach, check out my online courses/resources to assist people, pets and businesses here: https://courses.thelivingplanner.com
As W. Clement Stone said, “Thinking will not overcome fear but action will” ❣️ -Lynn
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