FAQ on Power of Attorney

Can I Appoint More Than One Agent in a Power of Attorney?

You can appoint one agent or multiple agents in a power of attorney.

When Does a Power of Attorney Take Effect?

A special power of attorney may be signed in a number of situations. A person may appoint an agent to act on his or her behalf for a specific purpose, such as a real estate transaction, or for a set period of time, such as an extended trip to another state or country.

A general power of attorney comes into effect when the person who signed the document, known as the donor, becomes unable to manage his or her affairs. Before the agent can start to manage the donor's affairs, the donor must be examined by at least one physician to confirm that the donor is not competent to manage his or her own affairs.

What Standards Must an Agent Follow When Managing a Donor's Affairs?

An agent named in a power of attorney must act in the donor's best interests at all times. The agent is also required to keep records and receipts for all transactions conducted on the donor's behalf.

Can a Power of Attorney be Changed or Revoked?

As long as the donor is competent, he or she can make changes to the provisions in the power of attorney or revoke it completely.

Is a Power of Attorney the Same as a Living Will?

As you review the FAQ on power of attorney documents, keep in mind that this document is not the same as a living will. The purpose of a living will is to provide instructions to be followed when the person is close to death either due to illness or injury, and is not able to give consent to or refuse medical treatment.

What Happens if I Become Incapacitated and Don't Have a Power of Attorney?

If a person has not signed a power of attorney and becomes incapacitated or incompetent, his or her spouse, partner, or family members will have to go to court to be given the authority to manage that person's affairs. A person appointed by the court to manage the affairs of another person is called a conservator.

What Happens After the Court Appoints a Conservator?

The conservator may be required to:

• File a detailed accounting of all financial transactions with the court at certain intervals.
• Post a bond to guard against the misappropriation of funds.
• Appear in court to receive permission for transactions involving the sale of real property or making investments on the donor's behalf.

Do I Need a Power of Attorney?

All adults should have a power of attorney. One's whole life can change very quickly due to illness or injury; it makes sense to include a power of attorney as part of one's overall estate planning.

If you have further questions or concerns after reading the FAQ on power of attorney, contact an attorney experienced in estate matters for assistance.