What is Power of Attorney?

During most of our lives, we make our own decisions and are responsible for taking care of ourselves. However, when the situation arises where you cannot make decisions or care for yourself, the power of attorney comes into play. What is the power of attorney? Quite simply, it is the handing over of power and authorizing some other individual to act on your behalf, whether in business or personal dealings, such as health care decisions. The person executing the document and assigning the powers is called the "principal". The person who has the power of attorney is called the agent (or "attorney in fact"), and that person can sign documents in your name, enter into contracts, make medical decisions, and so on. The agent, that is, the person you assign with the power of attorney for you, does not have to be an attorney -- anyone you choose can serve in this capacity. The POA must be in written form to be accepted by most hospitals, doctors, banks, insurance companies, etc. Most often, the power of attorney is invoked when a person becomes incapacitated either physically or mentally, and is unable to care for themselves or make these kind of decisions. If and when a person dies, the power of attorney held by the agent also terminates, and legal proceedings are handled through the will and estate at that point, with the agent no longer being allowed to make decisions.

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Power of attorney specifically set up to take effect when a person becomes physically or mentally incapacitated is called "durable power of attorney", which can often serve as a living will in some areas. Durable power of attorney allows the agent to make life and death health care decisions for the person, including withholding life support if those were the wishes of the person. Sometimes a special health care proxy form is required in addition to the power of attorney form -- you will need to look into the requirements of your state when you go about setting up theses forms and documents. Normally, durable POAs will say something like "The powers you grant below continue to be effective should you become disabled or incompetent." Another type is the "non-durable" power of attorney, which allows another to temporarily handle business issues for you, like having your attorney sign the closing documents on a house if you are out of state and unable to attend in person. A non-durable power of attorney limits both the time and scope of powers assigned.

Medical Power of Attorney Forms and POA Forms

Setting up a power of attorney doesn't need to be expensive. Lawyers can do it for you as part of your estate planning process, or you can use one of many templates found in books, software packages, and on online sites. Also, many states have specific forms that are available for free use - search for POA forms for your state and look for .gov sites that list them. When setting up a power of attorney, you can spell out specific powers you want to grant the agent (who can be whomever you choose), like the ability to buy or sell real estate, access to bank accounts, control over insurance policies and decisions, to control estate and trust concerns, handle litigation, settle tax issues, etc. The most important thing to consider when establishing a power of attorney is your agent -- this must be someone you literally trust with your life and assets. Also, consider listing an alternate agent in case your primary agent is unable to take over. For example, you might make your spouse your primary agent, but list a sibling as a secondary, backup agent, for example in case of the event both you and your spouse were injured at the same time and unconscious. Once you have created your power of attorney documents, be sure they are signed and/or notarized as your state requires, then keep safe copies for yourself, your agent, and perhaps with another trusted family member or family attorney so that the documents can be found in case of emergency.

There are a number of websites that offer ready-made power of attorney forms - all you do is enter your specific information, select the options you want to include, and boom, you have a power of attorney form ready to print out. You can check out RocketLawyer.com, for example. They offer single legal documents at $19.99 each, including power of attorney forms. Their master documents are drafted by professional lawyers, and are tailored to meet the requirements of individual states. They let you try it for free so you can see your document draft before purchasing, but you first have to create an account with them (their company created QuickenŽ Family Lawyer, as well). Also check out LegalZoom.com - they offer basic POA forms for $35.

Free Power of Attorney Forms

You can check out a free power of attorney form here (http://www.ilrg.com/forms/powatrny.html) - it is a sample, but gives you some idea of what kind of language and items might be included in such a document as you begin your planning process. You can see another sample free power of attorney form here (http://www.clearleadinc.com/site/power-of-attorney-form.html).

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