A power of attorney (POA) is a key tool in any estate plan. It lets you choose someone you trust to act for you in legal, financial, or medical matters. Whether you are preparing for incapacity, travel, or long-term care, a power of attorney makes sure your affairs are handled according to your wishes, even if you cannot make decisions yourself.
At Prado Law Offices, our Oklahoma City estate planning attorneys can help you draft and manage your power of attorney documents. Schedule a consultation to learn how we can help.
What Is a Power of Attorney?
A power of attorney is a legal document that authorizes another person to act on your behalf. This person is usually called your “agent” or “attorney-in-fact.” The scope of authority can be broad or limited, depending on how the document is drafted.
There are several types of POAs, including:
- General Power of Attorney: Grants broad authority over financial and legal matters.
- Limited (Special) Power of Attorney: Restricts the agent’s authority to specific tasks or timeframes.
- Durable Power of Attorney: Remains in effect even if you become incapacitated.
- Springing Power of Attorney: Only becomes effective upon a triggering event, such as a medical diagnosis of incapacity.
- Medical (Healthcare) Power of Attorney: Authorizes someone to make healthcare decisions if you’re unable to do so.
Why A Power of Attorney is so Important
Here are some of the many reasons why POAs are critical:
1. Avoiding Guardianship Proceedings
If you lose capacity and have not set up a POA, your family may have to ask the court for guardianship or conservatorship. This process takes time, costs money, and is public. A durable POA prevents court involvement by giving authority in advance.
2. Managing Financial Affairs
A POA allows your agent to:
- Pay bills and manage bank accounts
- Handle investments and real estate transactions
- File taxes and apply for benefits
- Operate a business or manage rental properties
3. Making Healthcare Decisions
A medical POA empowers your agent to:
- Consent to or refuse treatment
- Access medical records
- Coordinate with healthcare providers
- Make end-of-life decisions consistent with your values
4. Planning for Long-Term Care
Your agent can help set up in-home care, assisted living, or nursing home placement. They can also handle Medicaid applications and asset transfers to keep your eligibility.
5. Protecting Your Wishes
A POA ensures that decisions are made by someone you trust rather than a stranger appointed by the court. It allows you to define the scope of authority, set limitations, and provide guidance on how decisions should be made.
Choosing the Right Agent
Your agent should be someone who is:
- Trustworthy and financially responsible
- Familiar with your values and preferences
- Willing and able to act in your best interest
- Capable of handling complex decisions under pressure
How to Create a Valid Power of Attorney
A POA must be:
- In writing
- Signed by the principal (you)
- Witnessed or notarized, depending on state law
It is best to work with an estate planning attorney to ensure your POA complies with local statutes and reflects your intentions clearly.
Can a Power of Attorney Be Revoked?
Yes. As long as you are mentally competent, you can revoke or amend your POA at any time. You should notify your agent and any institutions relying on the document (e.g., banks, hospitals) of the change.
Get Help Drafting and Implementing a Power of Attorney
A power of attorney is a cornerstone of responsible estate planning. It protects your autonomy, streamlines decision-making, and prevents unnecessary legal complications. Whether you are planning for the future or preparing for the unexpected, executing a POA is one of the most important steps you can take to safeguard your interests.
Our team at Prado Law Offices can help with your estate planning documents, including powers of attorney. Contact us today for a consultation.