How Does a Power of Attorney Work?

A complete estate plan encompasses more than determining who will get your money after you pass away. Estate planning also requires you to decide who will manage your business and legal affairs in the event that you become incapacitated.

A power of Attorney is a legally binding document in which you give someone else the authority to act for you. A Power of Attorney is very versatile. It can cover simple tasks such as writing or endorsing checks as well as complex transactions like selling real estate. It can also authorize just on task, like selling an heirloom, or it can give your agent the power to perform every task that you now perform today.

You can give Power of Attorney to anyone you trust. Your agent does not have to be an attorney. You might choose your child, your sibling or spouse. Whomever you choose, don't worry about your agent "taking over" or that you won't be able to make your own decisions. In actuality, giving someone Power of Attorney is in essence like giving them a second set of keys in case of emergency. The best part is that you can take the agent’s keys back at any time by revoking the Power of Attorney.

Since there are a large number of options available to you when drafting a power of attorney, it is always best to consult with a legal professional to determine the best path for your specific set of circumstances.