What is the Power of Attorney?

Ever wondered if you should consider setting up the power of attorney for yourself? Read below to find out more about this legal authorization.

The power of attorney grants one or more persons to act on behalf of an individual. Many individuals who can no longer manage their affairs independently get this legally binding document. Most of the time, older individuals or those with illnesses will resort to power of attorney in the case that their conditions worsen. The activities that the power of attorney covers are usually legal matters, ranging from property management to medical care.

For older individuals, the power of attorney presents a range of benefits, making it almost essential. While it can be scary, putting power in the hands of someone that you trust can provide peace and stability. For many, the power of attorney is assigned to trusted family members. This ensures that family members can take care of their beloved ones without additional legal obstacles, giving them peace of mind too. Lastly, the power of attorney reduces unnecessary court proceedings that may occur when something happens to the older individual. Thus, the power of attorney significantly reduces processing times for other legal matters that family members have to handle after the passing of their loved one.

However, there are certain limits to the power of attorney. The person setting up the power of attorney must be in their right state of mind for it to hold up in court. Additionally, there is always a possibility that the assigned agent will not act in the will or interest of the individual. Therefore, selecting a trusted family member or friend is extremely important. Likewise, the power of attorney must comply with your state’s laws. For example, The Uniform Power of Attorney Act (UPOAA) outlines a set of laws regarding the creation of the power of attorney, signed by 26 states. Thus, a power of attorney established in New York, which is not a member state, can be contested in one of the 26 states. As a result, it is important to check the validity of your power of attorney document when moving states.

Setting up the power of attorney varies from state to state, but there are two general options. Firstly, you can contact a local attorney or lawyer to help you fill out the paperwork in accordance with your state’s laws. A professional will ensure that all of your paperwork is in order, but that will entail extra costs. On average it costs between $250 and $750 to get a power of attorney. As an alternative, you can set up the power of attorney independently through online platforms. These include platforms like Nolo, LegalZoom, and RocketLawyer. These services are more accessible and less costly, but the do-it-yourself nature can be confusing for those without legal experience.

The specific steps involved in the actual process are the following:

1. Name your proxy (i.e., the person who will oversee handling your decisions)

2. Set up a meeting with a lawyer or online service

3. Finalize and sign the power of attorney document (Find a sample document for California here)

4. Give out the document to the people concerned

5. Always update your documents

While it may seem daunting and scary to set up a power of attorney, it is necessary to ensure smooth decision-making in the case of unprecedented circumstances.

— Eugenia Shakhnovskaya