What is a 'Power of Attorney'?

A power of attorney is a legal document that gives one or more people the power to manage your financial affairs. When developing your Estate plan you should not only give consideration to how matters will be dealt with when you pass away but also under circumstances where you may be mentally incapacitated or unable to act otherwise. The power of attorney is the necessary and appropriate document under such circumstances. The two main types of power of attorneys are as follows:

Continuing Power of Attorney for Property
This type of power of attorney covers your financial affairs and assets and allows the person you named to act for you even if you have become mentally incapable; and
Power of Attorney for Personal Care
This type of power of attorney covers personal decisions that may relate to health care issues.

The attorney does not need to be a lawyer and can be anyone that you want to choose to act on your behalf. For a clear and concise basic question and answer review of power of attorneys please click here to see The Office of The Public Guardian and Trustees review.

A power of attorney may also be useful when an individual plans to be out of the country or away from home and they need matters attended to or endorsed on their behalf. It may also be useful for individuals who are unable to get out of their home on a regular basis (elderly, disabled, etc.) and require someone else to conduct their business affairs or banking, etc.