Unexpected events are – well – unexpected, however, there are ways you can plan to prepare for such events if and when they do happen. In the event you are incapacitated, due to an illness, injury, or for other reasons, having a power of attorney (POA) would allow you to designate another person to make medical decisions for you when you can’t. A power of attorney is a legal document that allows you (the “principal”) to give authority to another individual (the “agent” or “attorney-in-fact”) to make decisions on your behalf.
There are specific circumstances when an agent would step in, as well as different types of POA arrangements and degrees of responsibility in a POA agreement. POA types include:
Conventional POA – Known as the “limited power of attorney”, conventional POA goes into effect when you become incapacitated. It often specifies the exact authority you are giving the agent, such as the authority to sign a document pertaining to financial assets or investments.
Durable POA – A durable POA goes into effect when it’s signed and stays in effect for life, or until it is canceled.
Springing POA – A springing POA goes into effect when a specific event occurs, and this event is usually described and detailed in the terms of the agreement.
Medical POA – A medical POA is the combination of a springing POA and durable POA; it goes into effect under certain conditions, typically medically related (this is where the springing aspect comes in) and can be written to end when the principal is no longer incapacitated or when he/she recovers.
Benefits of Having a Power of Attorney
Emergencies or Unexpected Events
The most important reason to have a POA is that it protects you in the case of an unexpected event. The best way to illustrate the importance of having a POA is to imagine a scenario where you are incapacitated and don’t have one (or you haven’t named someone specific). Without an appointed POA, depending on your state’s laws, the court might have to step in to make decisions on things such as your medical care, living care, financial accounts, bill payments, property management, amongst other items. However, with a POA in place, an agent who was specifically appointed by you, who knows you and your wishes, would have the power to make decisions on these important things on your behalf.
Important Aspects are Protected
Under a power of attorney, the designated agent does not have the power to alter the principal’s will, nor do they have the authority to make decisions on behalf of the agent after their death. Therefore, there is some degree of protection given to the principal through these rules – the agent is required to act in the best interest of the principal.
Appointing a power of attorney offers the principal – you – the opportunity to control who oversees your health and assets in an unexpected event; it is something you should be considering if you haven’t already. Angelique Friend of Probate Services has expertise as an agent under a power of attorney. She has experience managing trusts and estates and can answer any further questions you may have. To contact her, feel free to visit angeliquefriend-probate.com or call (805) 604-1998.
