The most important estate planning documents are powers of attorney documents.  This is a shock to some; take a moment to read the answers to the most common questions regarding this estate and lifetime planning necessity:   

1. What is a Power of Attorney?
2. Who Can Create a Power of Attorney?
3. Who May Act as Agent?
4. What is the Difference Between a General and Limited Power of Attorney?
5. How Does the Agent "Use" the Power?
6. What Should I do If I Suspect My Power of Attorney Documents are outdated?

What is a Power of Attorney?

A power of attorney is a document authorizing someone else (your agent) to act on your behalf (the principal). The purpose of giving someone such a power in connection with your estate planning is to enable the agent to act on your behalf when you cannot act for yourself.  A power of attorney prepared by an elder law attorney will typically contain special provisions allowing your agent to engage in Asset Protection Planning and Public Benefits Planning on your behalf, including the ability to make unlimited uncompensated transfers in an effort to protect your assets from the forced liquidation that might otherwise be required if you were to enter a nursing home.

Who Can Create a Power of Attorney?

Generally, any individual can create a power of attorney if over 18 years of age, a resident of the state in which it is created, and legally competent. This, however, varies from state to state.

Who May Act as an Agent?

In general, an agent may be anyone who is legally competent and over the age of 18. Usually, it is a family member such as a spouse or a child. More than one person can be named as an agent. However, sometimes naming two or more individuals to act together can prove inconvenient, particularly if a power of attorney must be exercised promptly. A better course is to name one individual as agent and then another as an alternate

What is the Difference Between a General and Limited Power of Attorney?

A general power of attorney authorizes your agent to do almost everything on your behalf which you could do for yourself. A limited or special power of attorney authorizes your agent to perform only certain acts specifically listed in the document.

How Does the Agent "Use" the Power?

Your agent presents the power to the other party involved in the transaction and signs any necessary documents needed for such transactions on your behalf. Your agent signs "Your Name, by His or Her Own Name, Attorney-in-Fact for Your Name."

What Should I do If I Suspect My Power of Attorney Documents are outdated?

Visit our FAQ section for more common and important questions answered by Certified Elder Law Attorney, Evan Farr.

If you do not have a Power of Attorney integrated into your estate plan or if it has been some time since you created it (or if you obtained or created it without the assistance of counsel), the most important step you can take today is to call our office at 703-691-1888 to set up an initial free consultation to get your "Level 1" Planning Documents in place.  Click here to contact our Director of Client Services right away! 

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From Your Friends at The Farr Law Firm,

Notice: this newsletter is published as a free service of the Farr Law Firm. The information is for general informational purposes only and does not constitute legal advice. For specific questions, please consult with one of our experienced attorneys. We encourage you to share this newsletter with anyone you think may be interested.

*Virginia Has No Procedure for Approving Certifying Organizations.