When does power of attorney take effect?
A power of attorney is a document. It allows you to appoint a person or organization to manage your affairs if you become unable to do so. But, all POAs are not created equal. Each type gives your attorney-in-fact a different level of control. A general power of attorney gives broad powers to a person or organization. And they are responsible to act in your behalf.
These powers include;
- Handling financial and business transactions
- Buying life insurance
- Settling claims
- Operating business interests
- Making gifts, and employing professional help
General POA is an effective tool if you will be out of the country and need someone to handle certain matters. It also aids when you are physically or mentally incapable of managing your affairs. A general POA is often included in an estate plan to make sure someone can handle financial matters.
You can specify exactly what powers an agent may exercise by signing a special power of attorney. This is often used when one cannot handle certain affairs due to other commitments. It can even be health reasons.
Some of the common matters specified in a special power of attorney documents are;
- Selling property (personal and real),
- Managing real estate,
- Collecting debts, and handling business transactions
Signing, Sealing, and Delivering a Power of Attorney
You must sign and notarize the original POA document, and certify several copies. Banks and businesses won’t allow agents to act on your behalf unless they get a certified copy.
Attorneys are unnecessary to execute a power of attorney. Yet, it may be wise to consult one for advice about the powers granted. It provides counsel on your candidate agent. It also makes sure your document meets all legal requirements.
Remember, you can revoke a power of attorney at any time. this is by notifying your agent in writing and retrieve all copies of your power of attorney.
Needing a power of attorney is almost as certain as death and taxes in everyone’s life. Illness, injury, old age, or daily life commitments happen to everyone.