The most important part of this document is the choice of agent. This person will be in charge of many financial assets once the principal sign sthe document. Generally, people select close family members, such as spouses or children, or long-time friends. However, any person whom a principal trusts to make the best decisions on their behalf can be chosen. Be aware that if the principal chooses a spouse and then later ends the marriage, the spouse s power will automatically terminate.
In addition, if you ever become incapacitated, without this document, even if you have a spouse, the court may need to step in and appoint a guardian or conservator for you. The process of appointing a guardian is costly and requires the guardian to formally report your situation to the court each year. CNN Money estimates that the process of obtaining a court appointed guardian exceeds $1,000. If this is the situation you find yourself in now, please read our guide about getting guardianship over your elderly parent here.
A Springing or Conditional POA only goes into effect if a certain event or condition occurs. It can end at a specific time, when you become incapacitated or when you die.
A Power of Attorney document allows you to choose what your personal representative, or attorney-in-fact, will be responsible for by designating certain powers to them.