Among other basic estate planning documents, most Pennsylvania residents will want to sign a durable power of attorney to give a loved one or other trusted person authority to manage the person’s finances and to make certain financial and business decisions.
Unlike a will or a trust, a durable power of attorney takes effect while the creator of the power of attorney, called the principal, is alive. It gives another person, called the attorney-in-fact, authority to make financial decisions as listed in the document.
Those wanting a power of attorney can also put restrictions on the attorney in fact, name a backup or even name several people as co-attorneys in fact.
In most cases, the principal will reserve the right to revoke or replace their power of attorney document so long as they are competent to do so.
I can handle my own bills, so why would I need a power of attorney?
Some Chester County residents may want a power of attorney for the sake of convenience.
For example, it can be helpful to give one’s spouse or adult children authority to manage the person’s individual accounts that, for security and legal reasons, a person may otherwise have to manage themselves.
A power of attorney can also help when someone must travel often or go to remote places for their jobs.
A significant benefit of having a power of attorney is that, if the principal becomes unable to make financial decisions for themselves, the family will not need to go to court to get a legal guardianship. The attorney in fact can step in immediately to handle the principal’s property and financial affairs without an additional court order.
A power of attorney is a standard estate planning document. However, the decision about who to appoint as attorney in fact and other details requires careful thought. A person considering an estate plan should make sure they understand what is in their best legal interests.
