A power of attorney, or POA, is a legal document that allows you to choose who will make decisions for you in the future. If you’re ever unable to communicate your wishes, this document gives the parties you choose permission to act on your behalf. Here are a few frequently asked questions about this legal document.

What You Should Know About a Power of Attorney

Can you have more than one POA?

It's common for individuals to create multiple powers of attorney to assign different roles to various individuals. For example, if you're a business owner, you may trust your spouse to make decisions about your personal property and real estate, but you may want to leave your commercial operations to an associate instead.

Alternatively, some individuals want their agents to work jointly on the same tasks. If you have two adult children, for example, you may want both of them to be involved in reviewing and approving checks written from your accounts. Many people also use power of attorney plans in conjunction with health care proxies who can make medical care decisions. 

Can a POA be challenged?

An individual must be mentally competent when they draft and sign a POA, so it may be helpful to have the document witnessed and signed by your doctor. It’s more common for a dispute to arise over the execution of the document.

The named trustee may try to exercise their power, claiming the individual meets the criteria for incompetence. In that case, a hearing will be held in which the individual and their attorney will have an opportunity to prove they’re still competent and capable of making their own decisions.

Can a POA be revoked? 

Under New York State law, the power granted to an agent can be restricted by specified terms. If you later want to change these terms, or pick a different power of attorney, you can revoke the document and make a new one, provided you're of sound mind.

In cases where your agent is found to be stealing from your estate, or has not acted according to your best interests, you also have the power to revoke the POA. In cases of theft or a breach of duty, a court may revoke this power for you.

Under what conditions is the POA terminated?

As the principal, or the individual who drafted the power of attorney, you can revoke the document entirely, or revoke one agent’s authority, at any time. If you revoke an agent’s authority, a co-agent named in the document can assume full responsibility.

The document is also invalidated upon your death, since other estate planning documents will go into effect at that time. The document also becomes invalid if the agent named within it dies and there isn’t a co-agent named in the document.

Having a power of attorney allows you to put your healthcare and financial matters in the hands of someone you trust. John E. Bach Attorney at Law in Goshen, NY, has more than three decades of estate planning experience and can help you draw up a comprehensive and legally binding POA. He also practices real estate and family law. To schedule a consultation, visit the lawyer online or call (845) 294-7941.