How do Powers of Attorney work?
A valid Power of Attorney is an important and necessary piece to any estate plan. It provides for some protection in the event that you are temporarily and or permanently incapacitated.
A well written Oregon Power of Attorney provides your Agent with the authority to handle your financial affairs at times when you may not be mentally or physically able to sign documents or deal with your own financial obligations. Although most people envision the example of being sick or in the hospital, a Power of Attorney can also make it easier for your Agent to handle your affairs when you are traveling.
Powers of Attorney can be general and cover nearly every situation imaginable, or they can be very specifically tailored and limited. In fact, the last time you purchased a new car, you might have signed a very limited Power of Attorney allowing the dealership to sign for you to change and transfer titles and apply for registration with the DMV.
Over the course of an estate planning lawyer’s career, they will have helped clients through many different situations and cases. Good lawyers will have created their own forms and clauses for a power of attorney that fits your needs that you will be hard-pressed to find in do-it-yourself Power of Attorney forms.
A well written Oregon Power of Attorney provides your Agent with the authority to handle your financial affairs at times when you may not be mentally or physically able to sign documents or deal with your own financial obligations. Although most people envision the example of being sick or in the hospital, a Power of Attorney can also make it easier for your Agent to handle your affairs when you are traveling.
Powers of Attorney can be general and cover nearly every situation imaginable, or they can be very specifically tailored and limited. In fact, the last time you purchased a new car, you might have signed a very limited Power of Attorney allowing the dealership to sign for you to change and transfer titles and apply for registration with the DMV.
Over the course of an estate planning lawyer’s career, they will have helped clients through many different situations and cases. Good lawyers will have created their own forms and clauses for a power of attorney that fits your needs that you will be hard-pressed to find in do-it-yourself Power of Attorney forms.
Remember. You cannot wait
You cannot wait when it comes to executing a Power of Attorney. For a Power of Attorney to be valid, you must have the appropriate mental capacity to give an Agent the power to sign documents for you. If you reach a stage of incapacity, you cannot sign a Power of Attorney and a costly guardianship, conservatorship, or other protective proceeding may be necessary to ensure that someone can make financial decisions for you.
If you would like to discuss your estate plan, or just get the process started send me a message today.
If you would like to discuss your estate plan, or just get the process started send me a message today.
Should I have a Power of Attorney?
Will you ever need someone to care for your finances if you become incapacitated? Appoint a person to:
- Make legal decisions for you.
- Pay your bills on time.
- Arrange for your health care.
What is a Power of Attorney?
A well written Oregon Power of Attorney gives another person the ability to take care of your bills, expenses, and legal documents with an Oregon Power of Attorney form. Powers of Attorney are an important estate planning tool for when you suffer from mental or physical incapacity. Our Oregon Estate Planning Lawyer will help you decide who you should give these important powers to and how much power you should give them. A Power of Attorney can help delay the need for a guardianship or conservatorship in your future.
As you know, anything can happen in the blink of an eye. When an emergency strikes, some of the important details of your life may be ignored. A power of attorney is an important piece of any estate plan. In the event you are no longer able to take care of your finances, you want someone around who can pay your bills, operate your business, makes decisions regarding gifts, and sign new or ongoing contracts.
Without a power of attorney or some other type of incapacity planning in place, someone may have to open a guardianship or conservatorship over you. Guardianships and conservatorships both require Court oversight. This means that you will lose your privacy and may incur fiduciary and attorneys fees that could have been avoided.
Whether the need is as minor as being out of the country, or as complex as losing mental capacity, The person or organization you appoint as your attorney-in-fact or Agent will have authority as broad or limited as you have given them in your Power of Attorney document. A power of attorney should be tailored to your needs and circumstances. What many people do not realize however, is that a power of attorney must be prepared while you still have the mental competency to do so. This means you cannot wait until you have lost mental capacity and then execute a power of attorney document; although sometimes people try.
Some people try to solve this problem by executing power of attorney documents that claim not to take effect until some point in the future, such as when they become incapacitated later on. This may or may not be a good idea. It may be difficult to prove mental capacity or incapacity or you may change your mind about who should have a power of attorney over you. I always ask my clients, “If you do not trust someone to be your attorney-in-fact when you are fully mentally competent, why would you trust them when you are not?” Since giving someone a power of attorney over you carries with it a risk of abuse, choosing a proper candidate for that power is an important choice that should be discussed with an experienced lawyer.
Please contact our office if you would like to know more about a using a Power of Attorney in your estate planning.
Without a power of attorney or some other type of incapacity planning in place, someone may have to open a guardianship or conservatorship over you. Guardianships and conservatorships both require Court oversight. This means that you will lose your privacy and may incur fiduciary and attorneys fees that could have been avoided.
Whether the need is as minor as being out of the country, or as complex as losing mental capacity, The person or organization you appoint as your attorney-in-fact or Agent will have authority as broad or limited as you have given them in your Power of Attorney document. A power of attorney should be tailored to your needs and circumstances. What many people do not realize however, is that a power of attorney must be prepared while you still have the mental competency to do so. This means you cannot wait until you have lost mental capacity and then execute a power of attorney document; although sometimes people try.
Some people try to solve this problem by executing power of attorney documents that claim not to take effect until some point in the future, such as when they become incapacitated later on. This may or may not be a good idea. It may be difficult to prove mental capacity or incapacity or you may change your mind about who should have a power of attorney over you. I always ask my clients, “If you do not trust someone to be your attorney-in-fact when you are fully mentally competent, why would you trust them when you are not?” Since giving someone a power of attorney over you carries with it a risk of abuse, choosing a proper candidate for that power is an important choice that should be discussed with an experienced lawyer.
Please contact our office if you would like to know more about a using a Power of Attorney in your estate planning.
