Why You Need To Designate A Loved One To Have Power Of Attorney
Durable power of attorney is a useful and low-cost estate planning tool that individuals can use to manage their finances or healthcare if they become incapacitated or unable to make those decisions. The power is granted through a carefully worded document so that the agent with power of attorney (POA) has the legal authority to pay bills, manage assets or whatever else is determined.
The needs of individuals and their families are unique. I understand this at DAL Law Firm. I’m attorney Darcel Lobo, and I will listen to your needs and concerns while also providing comprehensive guidance to tailor a POA document that will manage your financial and healthcare issues.
Financial Power Of Attorney
This designates an attorney-in-fact to make a wide range of financial decisions. You do not lose any rights to make these decisions when a lawyer drafts a POA here in Washington state. Instead, you simply add another person who has the ability to make decisions covering the following:
- Making investment decisions
- Writing and depositing checks
- Buying and selling real estate
- Managing a business
- Paying taxes
Healthcare Power Of Attorney
A healthcare power of attorney is a contingency plan that designates an agent who can make decisions or execute instructions if an individual or principal is incapacitated or otherwise unable to make decisions in regard to their healthcare. This can be helpful in the following situations:
- An individual suffers from mental illness
- An individual was involved in a catastrophic accident
- An individual needs to go to a nursing home or move to another one
- An individual’s medical protocols need to be acted upon
The Implications Of A POA
Make sure the person you choose to give durable power of attorney is someone you trust. They will have access to your assets and will be able to make the same decisions as you would, so extra care should be taken in electing a power of attorney. An individual can give this power immediately or stipulate the circumstances under which the POA would be enacted. The individual can also choose to revoke the power of attorney at any time. The POA terminates when the individual passes away. At that point in time, the decedent’s will or trust will control the administration of their assets.
Frequently Asked Questions About Powers Of Attorney
When you’re crafting power of attorney documents, as with any complicated legal work, there are often many questions about the right way to go about things. Often, when clients come to me, they start with questions like these:
What makes a power of attorney durable under Washington state law?
Power of attorney is not just an estate planning tool for people. It is a designation for any time you put someone in a position to make financial decisions for you. For example, perhaps you are having someone negotiate a home sale. However, a standard power of attorney expires when you become incapacitated. Durable power of attorney, which is what is necessary for an estate plan, does not.
Can an agent under a financial power of attorney sell real estate on my behalf?
Yes. A person with financial power of attorney has broad financial authority and can make real estate sale decisions on your behalf. However, it is possible to limit the powers of your POA to only specific types of financial actions. This can be something we discuss in crafting your estate plan.
What is the difference between a medical power of attorney and a healthcare directive?
A healthcare directive includes things such as do not resuscitate (DNR) or do not intubate (DNI) orders. They are clear documents that healthcare professionals refer to in making decisions about your care. But they do not cover all situations. When someone is incapacitated, there can be treatment options beyond those basic instructions that may save your life or improve your condition. Those decisions must be made by someone, and if you do not have next of kin available, then this will fall to your power of attorney.
Contact Me Today To Prepare Your POA
I can help you make the right call when it comes to choosing your power of attorney. I have the experience and knowledge to make this process as simple and straightforward as possible. Call my Normandy Park office at 206-408-1688 or contact me through this website.