Power of Attorney: What it Can (and Can’t) Do for You

You might think that a power of attorney simply means someone can sign papers for you, but it actually goes far beyond that. This legal tool can grant someone broad control over your life, from managing your money to making life-altering decisions. In this article, you will learn what you need to know before signing any power of attorney documents or forms, including what it is, what powers it grants, its limitations, and its potential risks. McFarland Ritter Law Firm in Boise, ID, is here for all of your durable POA needs.

What is a Power of Attorney?

For starters, let’s discuss what a power of attorney is. A power of attorney (POA) is a legal document that allows you to authorize someone else to act on your behalf, including making decisions and signing documents for financial, legal, or health-related matters. 

There are two terms you need to know when talking about these documents: principal, which is the person who is giving the authorization, and agent, which is the person the principal is giving authorization to.

Did you know there are different types of legal POAs?

• General Power of Attorney: This type of legal POA authorizes the agent to act on your behalf on a broad range of matters. 
• Limited Power of Attorney: This type of authority is limited to specific matters or for a specific amount of time.
• Medical Power of Attorney: This power of attorney document gives authority to the agent for medical decisions on your behalf in the case of you becoming incapacitated.
• Financial Power of Attorney: If you become unable to yourself, this legal POA gives authority over financial decisions to your designated agent.

In summary, general and limited power of attorneys are specific with the wishes and time periods. Generally, a power of attorney stays in effect even after the principal becomes unable to manage and make decisions for themselves.

Limited VS General POA: Why it Matters

You might be wondering what is so important about having a power of attorney. A limited POA is only effective as the circumstances they are built for. A general power of attorney is designed to step in exactly when a limited one might fail, and that is when the principal becomes incapacitated due to illness, injury, or age-related decline. It is sometimes referred to as “durable,” meaning its legal power continues when other forms of POA would stop.

As for a real-world example, picture this: You suffer a stroke and are temporarily unable to speak, write, or make decisions. With a durable POA in place, your chosen agent could immediately begin managing your finances, paying bills, or handling insurance matters on your behalf without needing to go through court.

This kind of planning isn’t just smart but also compassionate. It spares your loved ones from the added stress of the legal process during a crisis and ensures your affairs are handled the way you intended.

What a Power of Attorney Can Do

We have talked about what POAs are and what they are for. Here is a list of the many things they can do for you:

• Manage bank accounts
• Pay bills
• Sign legal documents
• Handle real estate or business transactions
• File taxes
• Access retirement or insurance accounts

In short, a durable, general power of attorney allows your chosen agent to step into your shoes and manage your financial life when you are no longer able to. Their authority can be as broad or as limited as you want. It is a flexible tool designed to keep your affairs running smoothly.

What a Power of Attorney Can’t Do

Now what can’t they do for you? There are, in fact, legal limitations to a durable power of attorney. Let’s dive in. Usually, an agent cannot:

• create or change a will.
• transfer the POA to someone else.
• override the principal’s decisions while they are still competent.
• make healthcare decisions unless it’s specifically a medical POA.

Sometimes, it is assumed that a general POA is an umbrella POA that covers all other types of POA. It is important to note that if that is what you want–an all-encompassing power of attorney–you will need to also draft a medical (or healthcare) power of attorney document that includes those wishes as well.

How Do I Get a Power of Attorney Document?

Getting a special power of attorney form ready is not just about filling it out and signing. It is about making sure the document is valid, enforceable, and tailored to your life. Here is how to do it the right way:

1. Decide What Type of POA You Need

What kind of needs do you want covered? Financial matters? Healthcare decisions? Both? Remember: if you need both, you will need a general POA as well as a medical power of attorney.

2. Choose the Right Agent

Choosing the right agent for you is a huge decision, and you should choose someone you trust completely. They will be handling critical decisions on your behalf. You can also name co-agents or successor agents in case your primary agent cannot serve.

3. Work with an Attorney

While online templates exist, they often miss state-specific requirements or leave out important customizations. A power of attorney lawyer at McFarland Ritter can:

• Draft a power of attorney that meets Idaho’s legal standards.
• Ensure the power of attorney reflects your exact wishes.
• Help you understand how and when it goes into effect.

4. Sign and Notarize the Document

For it to be legally valid, a power of attorney in Idaho must typically be signed and notarized. Your attorney will guide you through this step and make sure it is done correctly.

5. Share and Store It Securely

Give a copy to your agent, your doctors, your financial institutions, and whomever your agent will be working with on your behalf.

While getting a power of attorney seems like an overwhelming task, it doesn’t have to be. With the lawyers at McFarland Ritter Law Firm, you will be guided through the whole process with excellent advice and expertise every step of the way. We specialize in helping Idaho individuals and families put the right legal tools in place. Contact McFarland Ritter in Boise, Idaho, today to schedule a consultation and take control of your future with confidence.