The Importance of a General Power of Attorney

A general power of attorney can be a helpful tool in a number of ways. It enables your chosen agent to make important decisions for you. However, POAs are not foolproof. It may be difficult to convince financial services companies that they can trust your POA. Using an attorney to draft your POA can help ensure that your document meets all state requirements. A qualified attorney will know how to word the document so that all the duties and responsibilities are clearly communicated.

Basic characteristics

A general power of attorney is an important planning tool that should be signed as soon as possible. This document allows you to define the level of involvement you want your agent to have in your life. You can specify whether you only want them to take care of day-to-day tasks, or if you want them to make major purchases for you.

Most people choose a relative, friend, or spouse as their power of attorney. However, anyone can be a good choice if they represent your interests best. The important part is that you have complete trust in this person and feel comfortable discussing your healthcare wishes with them.

Limitations

A general power of attorney (POA) outlines a person’s authority over a range of subject matters. However, it is important to note that a general POA may have specific limitations. For example, the agent must keep accurate records and give periodic updates. In addition, the agent may give out accounts to a third party. It is also possible for multiple agents to act jointly. In this case, multiple agents will serve as checks and balances and may disagree over schedules.

Another important limitation is the Agent cannot create an interest in the Principal’s property. This means that an agent may not give himself or herself authority to make gifts.

Revocation

If you wish to revoke a general power of attorney, you can do so in a variety of ways. The first step is to formally notify the attorney-in-fact of your decision. This can be done by sending a certified letter. It is also important to destroy any copies of the POA.

The second step is to notify the third parties who were relying on the power of attorney. The safest way to notify these third parties is to record the revocation of the POA. This can be accomplished in many ways, but it is important to note that there are a number of steps that must be taken.

Alternate agent

If you have given someone authority over your finances and would like them to take care of them when you are not around, you can name an alternate agent in your general power of attorney. This document gives the agent virtually unlimited powers, but there are risks that the agent may mishandle it. The bank and other third parties may not accept the power of attorney if the agent fails to follow instructions. Los Angeles Probate Attorney Therefore, it is essential to choose an alternate agent carefully. A legal professional can help you make the decision.

It’s important that the power of attorney specifies when the power will take effect and which powers the agent has. The powers can include making or amending a Will or designating beneficiaries for insurance policies. The agent should have specific powers to make decisions for the client and act in the best interest of the client. Specified powers are particularly important if the person in the power of attorney is married and could need long-term care. Also, having authority to transfer property can be important if the person is in need of Medicaid.

Cost

The average cost for a general power of attorney (POA) varies by state and lawyer, but is typically around $250. This cost can be much higher if several family members share a power of attorney or if the principal has a complex financial situation. The attorney may charge by the hour or on a flat fee basis.

You can also create a general POA to give someone else authority to manage your finances, but this is not the best option. It may not be flexible enough for your circumstances, so you will need to work with a lawyer or service that offers more specific powers.