A power of attorney (POA) grants an adult the authority to make decisions on someone else’s behalf. This may include decisions regarding financial and legal matters. The responsibilities of the agent, the person appointed as POA, toward the principal, the person who granted them decision-making authority, will depend on the circumstances. Sometimes, they have broad control. Other times, there’s a limited set of responsibilities.
Typically, enforcing power of attorney is necessary if the principal becomes incapacitated. This is often a situation of an older adult with declining mental or physical health. However, that’s not the only reason one might require a POA.
Sometimes, an otherwise healthy adult will set up a POA if they don’t have a spouse and need someone to manage their affairs if they often travel for work. A person in the military might have their agent handle their finances while they’re overseas.
How to Appoint a Power of Attorney
You should choose a person you trust as your power of attorney. This could be your spouse, friend, or even a company. It’s critical to have a conversation with the party you have chosen so they understand their responsibilities. Also, discuss the decisions they can make on your behalf. Some people decide they want their agent only to handle their finances. Others want the agent to take care of all their personal affairs if they become incapacitated and can no longer speak for themselves.
You will also need to determine how long you want the POA to last. The person you appoint can take on your responsibilities for the rest of your life or in a limited capacity, such as until you gain mental competency.
What Happens If I Don’t Have a POA?
If you don’t draft a power of attorney while mentally competent, any adult could petition the court for guardianship if you become incapacitated. That means they can ask a court-appointed committee to decide whether you can make your own decisions. If they grant the petition, your guardian will become responsible for your affairs.
This could be a problem for many reasons. You don’t have any say over who becomes your guardian. The court could appoint someone you might not trust to handle your financial, legal, or personal matters. That person could abuse their power and make decisions that don’t meet your interests. Also, petitioning for guardianship can be a challenge for your family. They must go through a long process and pay expensive fees to determine who will be responsible for your care.
You should consult an experienced lawyer to assist you in drafting a power of attorney. It’s essential to begin the process while you’re in good health. If a court deems you as incapacitated, any POA you try to establish won’t be valid because you don’t have the mental capacity to make sound decisions.
Our Tampa estate planning attorneys are here to walk you through your options. To schedule appointment at our Brandon office, contact us at (813) 438-8503.