Life is full of surprises. So if you’re incapacitated by an illness or injury, or are unable to handle your finances and assets for any reason, you likely want to ensure that someone is looking out for your interests. Assigning power of attorney to a trusted individual can help. The following is a guide to this worthwhile process.

4 FAQ About Power of Attorney

1. What is power of attorney?

Regardless of age, there may be a time when a person is unable to make decisions for themselves or their property. In such situations, a power of attorney is chosen to make choices on their behalf. By delegating someone for this job, you (the principal) would be giving the other legal authority to the person you have selected (the agent) to handle your affairs. In New York, you can file this decision online using a form from the New York State Department of Taxation and Finance. 

You can also determine the specifics of the arrangement. The transfer of power can occur immediately or in the future. It can also come with an expiration date. For instance, if you're hospitalized for an illness that leaves you in a coma, the power can be restored to you upon regaining consciousness. 

2. Are there different types of powers of attorney?

A general power of attorney is only viable if the principal is legally competent. However, assigning a durable power of attorney allows the agent to maintain control regardless of the principal’s physical or mental health. The latter is typically the preferred option in most cases because individuals tend to want to relinquish independent power when they're no longer able to act for themselves. You can also opt for a limited power of attorney, which limits the amount of control that the agent has to specific issues when the principal is incapacitated.

3. How do I choose an agent?

Considering the amount of power involved, you should choose a person that you trust. Typically, agents are an immediate family member, like a spouse or child, or a trusted professional. You also have the option to choose multiple agents, in case your first choice is unable to complete their duties. In all situations, you should ensure that they’re aware of your wishes and are committed to honoring them. 

4. What legal powers do they have?

Once given the authority, the agent serves as your representative in all areas of life — including buying, selling, and maintaining real estate. They're also in charge of investments, taxes, daily expenses, and applying for and receiving federal benefits, like Social Security Disability payments. However, you can revoke the power of attorney if you believe they’re not working in your best interests. 
 

If you need assistance designating power of attorney, turn to John E. Bach Attorney at Law in Goshen, NY. For over 20 years, the dedicated lawyer has proudly provided counsel for residents across Orange County. From living wills to trusts, he provides a personalized approach to ensure the satisfaction of his clients. Learn more about his services online, and request your consultation today at (845) 294-7941.