A Durable Power of Attorney also becomes effective immediately upon signing, however it allows the Agent to continue acting on behalf of the Principal even when he or she becomes incapacitated. This type ends automatically when you die, but you can also rescind it, as long you are not incapacitated.
You should consider having a POA if: You travel out of the country often. You are employed in a hazardous work environment. You have been diagnosed with a serious illness. You have business or property that you would want maintained if you were unavailable. You have children that would need to be provided for if you were to become incapacitated. You want a specific person to be responsible for your affairs. You have rules about how you run your business, property, or life, and you want to ensure they are upheld. You are approaching old age and would like to designate a representative for yourself.
If you take the time to create a Power of Attorney, you want to make sure that it will be effective. There are situations where your document may be rejected, or powerless if you aren’t careful. Here are a few steps you can take to help ensure your POA won’t be powerless:
- Use a state-specific form – Each state has different laws and statutes governing this document. Our state-specific forms are customized for each particular state.
- Make sure you have all signatures and authorizations – Some banks and financial institutions have specific requirements as to who needs to sign the document.
- Keep it up-to-date – If your state has rewritten its laws or your document is more than several years, it may be considered ‘stale’ and may need to be updated.
- Get it witnessed and notarized – Sign your document in front of witnesses, stating that you were competent and signed the document voluntarily. Also make sure to get your document authenticated by a notary public.
A Special or Limited POA gives an Agent the power to act on your behalf, but only specific powers. You can create several Special POAs, with different agents granted different powers. Here is a list of some of the specific powers you can grant to your Agent:.
- Sign checks.
- Withdraw money.
- Make a gift.
- Create, amend, revoke, or terminate an inter vivos trust.
- Create or change rights of survivorship.
- Create or change a beneficiary designation.
- Authorize another person to exercise authority granted by the power of attorney.
- Waive the principal’s right to be a beneficiary of a joint and survivor annuity, including a survivor benefit under a retirement plan.
- Exercise fiduciary powers that the principal has authority to delegate.
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