It’s smart to have a prearranged power of attorney (POA) as you plan for the future. This is a document that grants someone you trust the legal right to act on your behalf in areas like finance, real estate, and business if you’re incapacitated or otherwise unable to act in your own interests. This allows your business to be conducted according to your wishes even when you’re unable to do so yourself. Read on for the answers to several common questions about this legal arrangement.

An Introduction to Powers of Attorney

What’s a principal?

If you’re granting a POA, that’s you. As the principal, you have the power to appoint an attorney-in-fact called your representative. To be a principal, you must be over 18 years old and mentally competent to make decisions on your own behalf. You should be clear in the language of the arrangement about what powers you grant to your representative, and it’s up to you how limited or broad those might be.

What’s incapacity?

Incapacity is a state of medical, physical, or mental inability to manage your own affairs. This can be anything from a coma to a mental illness. Your condition and level of incapacity will affect your POA.

An ordinary power of attorney, for example, will be automatically canceled if you become incapacitated, while a durable POA will remain in effect even if you are.

What’s a durable power of attorney?

This is a way to protect yourself in the event of incapacity. A durable POA will enable your attorney-in-fact to act on your behalf when you don’t have the wherewithal to do so. This type of arrangement will remain in effect until the principal dies or it’s revoked.

Will you still be able to act independently after granting a power of attorney?

Yes. An ordinary POA will not prevent you from making decisions for yourself, and while you’re able to operate under your own capacity, neither will a durable one. You will still have the final say in all decisions regarding your property and your actions. If your attorney-in-fact disrespects this decision, you can and should revoke their privileges as your representative.

If you or a loved one needs help creating a power of attorney, trust attorney Louis C. Noto in Rochester, NY. With nearly 50 years of experience in wills, trusts, and estate planning, Mr. Noto is equipped to assist with a wide range of legal needs. To learn more about how he can help you, visit his website or call (585) 232-1815.