There could come a point in your future when you are unable to make certain financial or medical decisions. Having a power of attorney in place ensures there is a person available who can legally handle these situations for you in the same manner as you would. Use this question and answer guide to learn more about this legal document and why it’s important to have one.

A Beginner’s Guide to Power of Attorney

What is a power of attorney?

The power of attorney is a legal document that gives another person, known as the agent, the authority to act on the principal’s behalf under certain circumstances. It can name specific conditions under which the agent would receive power of attorney. In most situations, it will expire when the principal either dies or revokes the agent’s authority. 

What responsibilities can be authorized by a power of attorney?

The document can list a range of powers the agent is authorized to handle when you are not able. Usually, these arrangements are made to give a trusted individual the ability to carry out financial or medical decisions. This could be something as limited as having the power to access a bank account in order to buy essentials for your home if you are unable to get out. It could also hand over major responsibilities like managing your business or designating insurance beneficiaries. 

What powers are not given to an agent?

A power of attorney can allow an agent to make many decisions on behalf of the principal, which is why the language needs to be as specific as possible. However, the agent generally will not be allowed to carry out any acts you wouldn’t do on your own. They also cannot vote on your behalf, make or alter a will, amend or revoke living trusts, handle marriage or divorce issues, or access retirement benefits. 

Who should be given power of attorney?

Ultimately, this decision is up to you. However, it should be someone you trust and have no doubt will act on your behalf exactly as you intended. You can name multiple agents if you’d prefer to have different individuals in charge of different areas of your life. For instance, a spouse could be named to handle financial matters, and a child could be made responsible for healthcare decisions. 

Make sure your future medical and financial decisions are carried out the way you prefer by having the professionals at Lance S. Cox, Attorney at Law, help you draft a power of attorney. Their experienced team has over 45 years of experience providing estate plans, probates, trusts, and tax preparation services to residents and businesses in Cincinnati, OH. Call them today at (513) 528-6000 to schedule a consultation and visit their website to learn more about their services.