Q:
I am 98 years of age. I have a will but someone told me recently that I should also
have power of attorney. Can you explain why I would need one and how I would go about getting one.
A:
As you know, a will kicks in when you die. Power of Attorney gives someone else the authority to act for you in carrying out your financial affairs if you are unable to act yourself due to illness. Or perhaps you are simply out of the country.
Everyone should have power of attorney, regardless of age. As we get older, it becomes even more critical.
Because of the rights it confers, this is not a power to be given lightly. You want to be sure you give it only to someone you trust implicitly.
Typically, couples give reciprocal POA's to another however you can name any relative, friend or even a professional.You should always name an alternate in case the first is unable or willing to act at the time. It is also possible to name more than one person as joint powers of attorney. However, this can cause difficulties. particularly if they disagree.
POA's are not valid if you become mentally incompetent unless you specifically state this condition in the document (called an enduring power of attorney). Often people include a " Triggering " event such as a letter from POA taking effect.
It can be cancelled at any time and at death it is cancelled automatically. While you can revoke a POA anytime, there is no central registry, so there is no way to prove whether a POA is still valid. Physically destroying the document is the only way to ensure it has been cancelled.
Because of this, financial institutions are wary of accepting general POA's and have their own forms. Therefore, it is prudent to complete theirs as well to have have a general form POA drawn as well. A general form is necessary when dealing with real estate and other properties.
There is no charge to complete the financial institution forms, a notary or lawyer will typically charge $75 to $125 to draw up a general power of attorney.
The Proper time to grant power of attorney is while you are still healthy.
