As we grow older, a power of attorney is an important thing to consider. While we might think we’ll be able to make our own decisions about our health and well-being as we age, that might not always be the case. In many cases, a power of attorney is put in place if someone can no longer make decisions for themselves. The power of attorney then holds the responsibility of making the majority of the decisions regarding a person’s health, estate, and finances. However, a power of attorney is a very complicated document, so it’s important to know the fine details. There are many power of attorney misconceptions that arise, so it’s always a good idea to learn the ins and outs. Here are just a few power of attorney misconceptions to be aware of.
3 Power of Attorney Misconceptions
1. If a person is deemed legally incompetent, they can still sign for a power of attorney.
Unfortunately, this is not the case. A person must be legally competent to sign over his or her rights to a power of attorney. This is why it’s so important to create a living will or to already designate a power of attorney in case you become incapacitated. The definition of a person who is legally competent is one who can serve as an executor or an administrator. Medical records and other documents are presented to a judge to determine if a person is legally competent enough to sign a power of attorney. Make sure that you properly communicate your wishes in case of an emergency. If not, your well-being might be left in the hands of an appointed guardian, regardless of your preference.
2. There is only one type of power of attorney
Another common power of attorney misconception is that there is one all-encompassing power of attorney, which just isn’t the case. There are actually two main types of power of attorney, a general power of attorney, and a limited or special power of attorney.
- A general power of attorney, which governs all powers covered by a power of attorney (like buying or selling property or otherwise managing one’s assets). However, the specific language of a power granted will depend on the document. The powers in a power of attorney are specific especially when custom drafted (which they ideally should be). The agent needs to check the power of attorney document to see if the necessary powers have been granted.
- A limited or special power of attorney, which refers to less than all powers. For example, a power of attorney could be drafted which only grants the power to conduct a real estate sale for the title of one property.
A power of attorney can also be divided amongst more than one person. Many choose this option because it will prevent one person from having complete control of your estate, finances, and health.
3. I can find a power of attorney online
Just because you can buy only the pineapple-flavored gummy bears, or your very own slushy machine online, does not mean that you should purchase your power of attorney online as well. While the Internet can be a wonderful place to find a variety of goods and services, it’s probably not a good idea to find a power of attorney online. Your best bet will be to find a trustworthy family member or friend that will look out for your best interests.
