What are these powers of attorney?
A power of attorney is a written document in which a competent adult person (the “principal”) appoints another competent adult person (the “attorney-in-fact”) to act on behalf of the principal. In general, an attorney-in-fact can perform any legal function or task that the principal has the legal right to do himself.
The term “durable” in reference to a power of attorney means that the power of attorney remains in effect for the life of the principal, even if he / she is mentally incapacitated. A principal can cancel a power of attorney at any time and for any reason. The powers granted in a power of attorney document can be very broad or very limited according to the needs of the principal.
Why is Power of Attorney so important?
Every adult has day-to-day issues to handle, like paying the bills. Many people are under the impression that in the event of a catastrophic illness or injury, a spouse or child can automatically act on their behalf. Unfortunately, this is often incorrect, even when joint ownership situations exist.
The lack of a properly prepared and executed power of attorney can cause extreme hardship when a person suffers a serious illness or injury that renders them unable to make decisions or manage financial and medical affairs. All states have legal, guardianship or guardianship procedures to provide for the appointment of a guardian. These typically require formal procedures and are costly in court. This means the involvement of attorneys to prepare and file the necessary and medical papers to provide medical testimony regarding the mental incapacity of the subject of the action. The procedures also require the participation of a temporary guardian to investigate, even intercede, in the substitution procedures. This can be time consuming, expensive, and very frustrating.
Preparing the power of attorney in advance can avoid the inconvenience and expense of legal proceedings. This should be done while the manager is competent, alert, and aware of the consequences of his decision. Once a serious problem occurs, it is too late.
The power of attorney can take effect immediately after signing or only in case of disability. Some examples of powers of attorney contained in the Power of Attorney are as follows:
1. REAL ESTATE: Execute all contracts, deeds, bonds, mortgages, promissory notes, checks, drafts, payment orders, and lease, collect rents, grant, negotiate, sell or borrow and mortgage, and manage, commit, liquidate, and adapt all matters related to the real estate sector.
2. ENDORSEMENT OF NOTES, ETC .: Make, execute, endorse, accept and deliver each and every one of the bills of exchange, checks, money orders, promissory notes and commercial acceptances.
3. PAYMENT OF NOTES, ETC .: Pay all the sums of money, at any time, or moments, that in the future owes for any bill of exchange, check, money order, note or commercial acceptance, made, executed, endorsed, accepted and delivered by me, or for me, and on my behalf, by my Agent.
4. SHARES, BONDS AND SECURITIES: To sell each and every one of the shares, bonds or other securities, now or in the future, that belong to me, that may be issued by an association, trust or corporation, whether private or public. , and to carry out, execute and deliver any assignment or assignment of said shares, bonds or other securities.
5. CONTRACTS, AGREEMENTS, ETC .: Entering safe deposit boxes, and making, signing, executing and delivering, acknowledging and executing any contract, agreement, writing or anything that may, in the opinion of my Agent, be necessary or appropriate to be entered, performed or signed, sealed, executed, delivered, recognized or executed.
6. BANK ACCOUNTS, CERTIFICATES OF DEPOSIT, MONEY MARKET ACCOUNTS, ETC .: To add or withdraw any amount from any of my bank accounts, Certificates of Deposit, Money Market Accounts, etc. in my name or for my benefit. Make, execute, endorse, accept and deliver each and every one of the checks and drafts, deposit and withdraw funds, acquire and exchange certificates of deposit, in banks, savings and loan associations and other institutions, execute or release said trust deeds or other warranty. agreements that are necessary or adequate in the exercise of the rights and powers granted here; Without being limited in any way by or limiting the foregoing, to carry out banking transactions as established in section 2 of PL 1991, c. 95 (c. 46: 2B-11).
7. TAX DECLARATIONS, INSURANCE AND OTHER DOCUMENTS: Sign all federal, state and municipal tax returns, insurance forms and any other document and represent me in all matters related to the above.
You should contact your attorney to have a power of attorney prepared for you, along with a will, living will, and other vital estate planning documents.