A power of attorney is an important part of your estate plan. A power of attorney allows you /principal to appoint a person/agent(s) to manage your financial affairs upon loss of capacity. With a durable power of attorney, your agent(s) can assist you during times of capacity and incapacity. Although some powers of attorneys are used for short-term purposes, such as allowing someone else to manage a real estate closing, most modern powers of attorney are “durable” powers of attorney and will remain in effect until revoked, or the death of principal. The Powers of attorney instrument is important because it provides a mechanism for managing your financial affairs, if you are unable to do so yourself. If you become incapacitated and lack a power of attorney, your family must apply to a probate court to have you conserved in order to manage your financial affairs.
The Principal may terminate a Power of Attorney at any time that they are competent to manage their own legal affairs. To terminate a Power of Attorney, the Principal should, notify in writing, any named Agent that they have terminated the Power of Attorney. The Principal should also collect and destroy the original and any copies of the Power of Attorney, and notify any bank or any third party that the Power of Attorney has been revoked. A Power of Attorney also terminates upon the death of the Principal. When the Principal dies, the Power of Attorney and any authority of the Agent is terminated.
It’s important to check with an attorney familiar with your state specific Power of Attorney rules and regulations. Rules for determining the competency of the principal and the procedures to execute the Power of Attorney vary by state. Also, the execution of a Power of Attorney does involve some risk. It gives allows your agent a great deal of authority over your finances, often without regular oversight. You should only appoint an agent in whom you have great confidence in, so he or she will always act in your benefit and according to your wishes.
Jay H. Jaser, Esq. is an Elder Law Attorney in Milford, CT who provides a range of legal services for the elderly and their families. He provides personalized counsel in the areas of Medicaid planning, application, submission, and long term care options. His goal is to assist families during the difficult times when long term care may be required. You can contact Attorney Jaser at (203)799-8888.