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What is a power of attorney?
Powers of Attorney documents allow another person to care for your affairs if you cannot. The powers may be limited to the authority to sell a house, for example, or may be broad and general without any written limitation. Often, the "principal" (the person who signs the document) appoints his or her spouse, son or daughter to serve as the "attorney-in-fact." Under the law, your representative is held to a high standard to act in your best interest.
Powers of Attorney that remain in effect during the principal's incapacity are called "durable powers of attorney." It may be effective immediately or only upon the principal's incapacity. During the last 20 years, durable powers of attorney have become one of the most common and useful estate planning documents.
Without a durable power of attorney, the only alternative if you are incapacitated may be a guardianship, which is an expensive court-supervised process. Compared to a guardianship, durable powers of attorney are relatively inexpensive and are always revocable.
A durable power of attorney can appoint someone to make medical and financial decisions, prevent the need for a guardianship, and allow gifts and transfers to facilitate Medicaid eligibility or minimize estate tax.
Many generic forms available at retail stores or on the Internet are not tailored to Washington law, and often lack important provisions. For example, under Washington law, an attoney-in-fact has no authority to make gifts of property unless the durable power of attorney specifically allows gifts. The power to make gifts is central to much estate planning; however, the pros and cons of the gift-giving power must be carefully weighed and only used when appropriate.
Durable powers of attorney are useful documents that should be entered into carefully. They can ensure that the basic elements of your estate planning affairs are in order.
To arrange for services from an Elder Law Attorney, visit the CHOICE web site at this location: Attorneys and Elder Law
Last update: 2007-05-05 22:09
Author: Tech Support
Revision: 1.1
