One concern that estate planning can help you address is what will happen if you’re ever incapacitated. This is where powers of attorney become advantageous. Find out more about how these documents work with these frequently asked questions.

FAQ About Powers of Attorney

What is a power of attorney?

A power of attorney is an estate planning document that grants special authority to a third party to make decisions on your behalf. One power of attorney document may designate a person to manage your personal finances, while another may designate someone else to handle your business affairs. There are many different powers of attorney, so you may need to have several documents drafted.

Why would you want a power of attorney?

There’s no telling what will happen during your lifetime. You might be injured in an accident or develop a serious illness at any point. These incidents can leave you physically unable to communicate your wishes. As you age, you might experience cognitive decline that leaves you unable to make intelligent decisions as well.

If you have a power of attorney in place, trustworthy people will make decisions about health care and finances for you while you're incapacitated.

When does a power of attorney go into effect? 

A power of attorney can be activated in three different ways. In some instances, it may go into effect as soon as an estate planning attorney has drafted and executed the document. It can also contain the specific circumstances in which it will go into effect in the future; for example, if you become physically unable to communicate. Alternatively, the document may specify a date upon which it will take effect.

When does a power of attorney end?

A power of attorney should include a clause that allows you to revoke it under certain conditions, usually to do with establishing your mental competency. In other cases, the document will remain in effect for a specified period or until you pass away. If you recover from a debilitating condition, you can issue a revocation of the power of attorney in writing.

If you don’t have any powers of attorney in place, consult the Law Offices of George N. Nam to get started. For more than 28 years, the firm has helped clients in Aiea, HI, with their estate planning and probate needs. To schedule an initial consultation, call (808) 487-9455. Visit the firm’s website for more information on their practice areas.