 |
|
|
Susan B. did not attend the closing of her condo in Omaha. She was shelling on the beach at Captiva, Florida over 1,500 miles away. But the closing went without a hitch.
Mark was in the midst of a big presentation when his sister called him in a rush. She wanted to make a few changes in her will and couldn’t find a copy. The appointment with her lawyer was in an hour. Could Mark run to the bank and get the original from his safe deposit box? Mark said a few words to his sister. Suddenly, all was well and he didn’t miss a minute of the meeting.
Joanna’s friend was always finding great stocks; she sat at the e-trade sites all day long. One morning Joanna spotted a buy that would be just right for her friend Margie, and bought it for Margie’s account. That afternoon Joanna sold the stock for a $3,000 profit, and called Margie with the good news, when she got home from work.
What Susan, Mark and Margie had in common was that they had all given a power of attorney to a trusted friend or relative to act on their behalf when they could not.
Perhaps the most important legal document for a single person is the Power Of Attorney, yet too few have one. A power of attorney can be general, allowing the person you name as your attorney in fact to do most every thing you could do with your money or legal signature. This includes, but is not limited to, closing on a house or condo, having access to your safe deposit box or trading stocks for your account.
By contrast a limited power of attorney, allows the attorney in fact to do only one or two things on your behalf. Susan’s limited hers to the powers needed to close on a home. Mark limited his to access to the safe deposit box, and Margie gave Joanna the right to trade for one of her accounts.
The traditional power of attorney takes immediate effect upon signing, and is automatically extinguished if the signer becomes incompetent to make his or her own decisions. While they are competent, a signer can revoke power at any time. Limited and revocable powers of attorney work great to clone yourself so you can be in two places at once.
But another type of POA, the durable power of attorney, has a different purpose. This stays in effect even if the signer becomes mentally or physically unable to make his or her own decisions. This is important in today’s age of increased longevity--expanding life span-- when many singles are worried that no one will know their wishes when it comes to long term care. There are also medical powers of attorney and health care proxies that give a trusted friend or relative the power to make health maintenance and end of life decisions for you.
It’s possible to make one or more people your attorneys in fact, acting together, or to have different attorneys in fact for different purposes. There is even a springing power of attorney that only goes into effect if you become incapacitated.
The bottom line for singles is that the power of attorney is an essential legal document. When thought through with care and used wisely, your wishes are carried out when you can’t be there personally to do so, or at a time of incapacitation.
Reader's Comments
Add Your Comment On This Article
|
|
 |
|
I understand what power of attny is and how it can be benefcial. My question is in reference to the stock purchase situation - How do you aquire a POA quickly. Do you need a form or make a call quick to your lawyer? From half way across the country how do you manufacture a binding document? fax?
- GM