What is a Durable Power of Attorney?

Durable Power of Attorney (POA) allows your elderly parents (so-called "main" in the power of attorney document) to assign the "Agent", such as a reliable family member or friend to cope with specific medical, legal and financial obligations.

There are two types of power of attorney:

  • Negotiated on health: Gives the person the right to make health care decisions on behalf of the person.
  • Negotiated on Finance: Gives the person the authority to make legal / financial decisions on behalf of the person.

Families should prepare their legal documents long before someone starts to have trouble handling some aspects of life. At the time of signing, an elderly man a lasting power of attorney should be able to decide to seek help. For example, people in the later stages of Alzheimer's disease can not be "sane" and therefore unable to assign POA

As confidence, durable power of attorney can be written so that the transfer of authority immediately. Or negotiation can be stated that the POA takes effect when your elderly parent becomes incapacitated. Up to this point, the senior can not continue to make decisions on his / her own.

Durable power of attorney is important because, if a person becomes incapacitated or incompetent without preparation of this document, family and friends will not be allowed to make many important financial decisions, pay bills or make important health care decisions on behalf of their parents. They can not make a decisive planning Medicaid. Anyone who wants to solve these problems, it is necessary to go to court and formally appointed guardian of the person.

There are several ways that you can Negotiated written, each of which allows a person who has power of attorney to make different decisions and different levels. For example, the document may say POA has the right to pay the bills or to sell certain assets. Or Contract may be extended to all financial decisions, including the sale of the family home, managing all of the assets, and the case with the IRS

People often shy away from the idea of ​​preparing and signing a long-term power of attorney. Senior maybe as if he / she loses independence, and this may be something that the person does not want to admit. Equally terrible idea that they appoint an agent will go against their wishes.

This, of course, it is essential to choose an agent wisely and discuss areas of responsibility. The document may be revised or revoked at any time, as long as the person who signed it shall be deemed competent. Otherwise, it remains in effect until the primary dies. To learn more about the lasting power of attorney, talk to a lawyer who has experience in estate planning.