What Makes the Power of Attorney Document So Important?
Introduction
According to the American Bar Association, people should update their POA documents regularly. A POA or power of attorney is essentially a legal document that leaves an attorney or agent the power to represent another person. It is crucial to understand that the attorney can have limited or broad legal authority to roll out legal decisions related to another person’s medical, finances, and estate matters.
When POA Document Becomes Necessary
POA document becomes crucial in case the principal is disabled or suffers from a severe illness. Similarly, a POA document becomes crucial when the principal individual is not able to sign legal documents to process financial transactions. In most cases, POA ends when the principal individual departs from the world. But principal can also invalidate and revoke the POA through an attorney.
Types of Power of Attorney
Yes, there is more than one type of power of attorney. In fact, different POAs come with different levels of delegated responsibilities. Mostly, power of attorney document comes down to four categories:
Traditional Power of Attorney
It is a broad POA that allows the power of attorney complete control over different aspects of your financial and personal life. In a traditional POA document, you entrust another person to serve as your proxy on every issue. You can only extend this type of POA document when you become incapacitated or pass away.
Durable Power of Attorney
A durable POA continues where traditional POA leaves off. Also, a durable power of attorney document becomes active before the principal becomes incapacitated and it continues to remain active even after the principal’s departure. As a principal, you have the legal right to either limit some agreement parameters or hand over full powers.
Limited Power of Attorney
Limited POA document allows much less power than traditional power of attorney. Often, people lean towards limited POA to handle a specific decision or take temporary action. This type of POA revolves around the closing of a real estate deal.
Springing Power of Attorney
Springing power of attorney is the opposite of a durable POA document. Springing POA document comes into effect “after” a principal becomes incapacitated until the time of his or her death.
What Happens When You Don’t have a Power of Attorney in Brooklyn, NY?
If you live in Brooklyn, NY, POA is not just reassuring – it serves as a legal instrument that safeguards your real estate, health, and financial interests. So, in the event of incapacitation or death, you can count on the POA document to work in your favor. Without a POA document in Brooklyn, NY – you will add unnecessary emotional distress and financial burden for your family.
Sum Up
You need to think of the POA document as a piece of mind that allows you to plan ahead of time. Whether it’s advanced planning or estate planning, you don’t want your family to make difficult decisions at your behest. In fact, short notice and decisions made in haste lead to emotional distress.
So, if you care about your loved ones, choose a POA without delay. Remember that the POA document will come into effect when you can no longer administer your personal and financial matters. The POA document allows you complete power over the process.
REFERENCES:
- https://boomerandecho.com/power-of-attorney-why-its-so-important/
- https://www.investopedia.com/articles/personal-finance/101514/power-attorney-do-you-need-one.asp
- https://www.caregiverstress.com/end-of-life-planning/why-power-of-attorney-is-so-important-for-seniors/
- https://www.offitkurman.com/publication/power-of-attorney-why-it-could-be-your-most-important-estate-planning-document/https://www.quotacy.com/importance-power-attorney/
- https://tuckerallen.com/the-importance-of-a-power-of-attorney-document/
- https://womenwhomoney.com/power-attorney-important/
- https://www.centralbank.net/learning-center/the-importance-of-a-power-of-attorney/
- https://www.araglegal.com/individuals/learning-center/topics/planning-your-legacy/importance-of-power-of-attorney
