| Most people have heard the term power of attorney | | | | necessarily mean difficult. This does not have to be a |
| but few people actually know what it means and what | | | | difficult legal document to create. |
| it's all about. A power of attorney is a very simple | | | | Along with specific powers that you grant, you can |
| document that lets you appoint someone else for | | | | also specify a timeframe of the power of attorney. |
| specific reason. Most of the time the specific reason | | | | You can specify that it takes effect immediately, you |
| has to do with making financial decisions, and signing | | | | can specify that it takes effect during a certain time |
| financial documents. | | | | frame (say August of next year), or you can specify |
| In fact most of the time powers of attorney are used | | | | that it takes effect upon a certain action; for instance if |
| in case you become disabled in some way or if you | | | | you ever get in a car wreck and are incapacitated |
| get sick and need somebody to handle your financial | | | | then the power of attorney would kick in. |
| affairs for you. | | | | One limitation of the power of attorney is that it ends |
| It is very simple to create a power of attorney. You | | | | automatically when you die. It also ends if the agent |
| can find the forms online, or at a stationery store | | | | you choose as your power of attorney dies. So if you |
| usually, or in any basic legal software that you can buy | | | | designate your friend Bob to be your power of |
| in any office supply store. Most states allow you to | | | | attorney if you ever get in a car wreck, and then two |
| simply write the name of the person that you're going | | | | weeks later Bob dies... your power of attorney is no |
| to designate as your power of attorney onto the form | | | | longer valid. |
| and then sign your name. You usually have to do this in | | | | The main risk involved with the power of attorney is |
| front of a notary public, which you can find in almost | | | | accountability. You can, in effect, fire the agent you |
| every bank. They usually cost between five and $10 | | | | designate as your power of attorney... that is you can |
| to have the notary stamp your document to make it | | | | dissolve the power of attorney whenever you want. |
| official. | | | | But as long as the document is in force, you have very |
| Once you've signed a power of attorney, it does not | | | | little control over what the power of attorney does |
| mean that this person has power over your financial | | | | unless you specified exactly what their powers are |
| affairs forever. You can revoke the power of | | | | when you first create the document. This means that |
| attorney at any time for any reason, or for no reason | | | | you should either 1, pick somebody you trust |
| at all. You can either grant your agent broad powers | | | | completely, or 2, be very specific when listing the |
| dealing with just about anything, or you can grant them | | | | powers that you grant your power of attorney agent |
| very specific and narrow powers limiting them to even | | | | when you first create the document. |
| a single specific action such as signing one document | | | | Generally speaking, you don't need to hire an attorney |
| one time. | | | | to draft a power of attorney document. However, if |
| The more specific and limiting the power of attorney is, | | | | you have any questions, or if your power of attorney |
| the more complicated the document will be that you | | | | document becomes too complicated... you should |
| create. Notice though that complicated does not | | | | absolutely discuss it with a licensed attorney. |