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What is Power of Attorney?
Power of attorney designates an individual (agent) to handle someone else’s affairs (principal) for a fixed or indefinite time period.A principal can appoint any adult they want as their agent. Once selected, an agent can perform any task for the principal if permitted in the power of attorney document.
Legal Definition
“Power of attorney” means a writing or other record that grants authority to an agent to act in the place of the principal, whether or not the term power of attorney is used.
Source: Uniform Power of Attorney Act (UPOAA), Section 102(7) (page 8):
How to Get Power of Attorney (5 steps)
1. Granting Powers
The principal can select a power of attorney document based on the powers granted. If multiple powers are given, the principal can select more than one type.
Powers to Choose
- Financial
- Durable POA
- General POA
- Limited POA
- Real Estate POA
- Vehicle POA
- Health Care
- Advance Directive
- Living Will
- Medical POA
- Minor (Child)
- Tax
- Federal (IRS 2848)
- State POA
3. Completing the Form
A power of attorney document can be completed by the principal or a lawyer (recommended).
Estate Planning
It is common to complete other estate planning documents while making a power of attorney, such as creating a last will and testament or living trust.
5. Storage and Use
It is recommended that the agent and any interested parties be given a copy. The signed copy must be shown each time the agent acts on behalf of the principal.
Where to Store
- Attorney’s Office – An estate attorney or someone who would know if the principal became incapacitated.
- Cloud Storage – Upload and share on Google Drive, Dropbox, or OneDrive to family members as “view only” so it can’t be modified.
- Family Member – Specifically, someone who is the executor or beneficiary of the principal’s estate.