Power of Attorney documents (POAs) are important legal documents for everyone once they reach the age of majority. They may be even more important in today's world as we deal with the current pandemic. As people who are more susceptible to the virus limit their exposure in public, it may be helpful to name an agent to assist them in the handling of financial matters. Or in the case of individuals who contract COVID, having POAs may be critical to making financial and health care decisions if they are hospitalized for a period of time.
POA documents are relatively easy to put in place. Most states have two separate POAs, one that covers matters pertaining to health care decision making and one that deals with property or financial matters. The documents are normally forms that are state-specific and drafted by the legislatures to reduce any confusion within the state.
The Durable Power of Attorney deals with financial or property matters and is a document that names a person as "agent" to act on your behalf in case of disability or unavailability. The document can allow an agent to handle financial matters (e.g., banking, bill paying, etc.) as well as property transfers. This document can be drafted broadly or be limited to specific acts.
A Health Care Power of Attorney designates an individual to make important health care decisions on your behalf. This can go into effect when you are unable to make decisions due to a temporary or permanent disability or when the document is executed.
Most individuals think of Wills and Trusts when it comes to estate planning, but because the Power of Attorney documents are there to assist you during your life, you should not be without them.
