Power of Attorney
Durable Power of Attorney for Asset Management, often referred to simply as Power of Attorney, allows one to appoint another person (Agent) to act on their behalf in financial and other legal matters. The Agent cannot make any health care decisions.
Powers of Attorney can be drafted for certain specific transactions or more general matters. They can be effective immediately, or they can be triggered by a certain event, for example, lack of competency. If the Power of Attorney is triggered by the lack of competency, a doctor’s opinion is usually needed to attest to one’s lack of ability to make decisions before the Power of Attorney becomes effective.
An Agent is only able to manage assets in a sole person’s name (Principal), and assets in a trust are not affected.
The Agent under Power of Attorney can only act while the person is alive; after death, the Durable Power is void.