WHAT IS A POWER OF ATTORNEY?
A
Power of Attorney is a legal document by which you give
someone else the authority to take some action on your
behalf. You are known as the Principal, and the person
you give the power to is your Attorney in Fact.
Every
estate plan should at least consider using a Durable
Power of Attorney. A Power of Attorney allows you to
appoint someone to look out for your interests when you
are too ill or infirm to do so on your own, or when it
is simply inconvenient to do so.
DOES THE PERSON HAVE TO BE AN ATTORNEY?
No.
This person will usually be a trusted friend or family
member. In this context, "attorney" means representative
or agent.
WHAT IS A POWER OF ATTORNEY USED FOR?
For
example, you take a job out of state and are selling
your house. You need someone to sign the papers in your
absence. You could do this with a Power of Attorney.
IS THAT ALL IT IS GOOD FOR?
No.
You can give your Attorney in Fact the authority to do
almost anything you could do for yourself. For example,
you could have your Attorney in Fact do your banking,
deal with your doctors, pay your bills, take out loans,
sell your property, or invest your money.
WHAT DOES THE WORD "DURABLE" MEAN?
"Durable" means that your Attorney in Fact can continue
to act, without the need to go to Court, even if you
become mentally incompetent, or if you are unconscious
or in a coma.
WHAT DOES THIS HAVE TO DO WITH PLANNING MY
ESTATE?
There
may come a time when you have to give up driving for
physical or medical reasons, and you may no longer be
able to do many things for yourself. With a Power of
Attorney, you can give a son or daughter or trusted
friend the power to do these things for you. A Power of
Attorney can also avoid some of the pitfalls of joint
property.
IS THAT ALL?
No. A
Power of Attorney can be most valuable if you become
disabled.
HOW IS THAT?
Doctors, hospitals and nursing homes generally will not
treat you without your consent. Also, there are
decisions to be made and papers to be signed regarding
your living arrangements and your property. If you are
not capable of giving your consent or making informed
decisions, someone will have to ask the Probate Court to
appoint a guardian over you.
Guardianship proceedings are very expensive and you
place your life under the continuing supervision of the
Probate Judge. Worse, you may have no control over who
the Judge appoints as your guardian. If you have a
signed Power of Attorney, a guardian will often not be
necessary.
CAN MY ATTORNEY IN FACT ORDER MY DOCTORS TO
WITHDRAW LIFE SUPPORT SYSTEMS?
Yes,
under some circumstances. The "right to die" is not a
legally settled issue in Michigan at the present time.
You do, though, have the right to decide what medical
treatment you will submit to.
There
is a law which allows you to appoint a Patient Advocate,
and requires the Patient Advocate to follow your
instructions concerning medical treatment. You can
instruct your Patient Advocate that you do not want
respirators, feeding tubes, and other life support used,
and you can refuse treatment that is against your
religious beliefs, or that you feel is too risky or
painful. You need a special kind of Power of Attorney to
appoint a Patient Advocate.
IS A POWER OF ATTORNEY EXPENSIVE OR DIFFICULT TO
PREPARE?
No,
not at all. The cost should be less than your Will.
DO BANKS, INSURANCE COMPANIES AND OTHERS HAVE TO
HONOR A POWER OF ATTORNEY?
Yes,
but you must be mentally competent and sign of your own
free will. Financial institutions may question power of
attorney forms, especially those that are prepared while
their customer is in a hospital or nursing home. You
should talk with a representative about any special
requirements that the institution may have.
ARE THERE ANY DRAWBACKS TO APPOINTING AN
ATTORNEY IN FACT?
You
are giving your Attorney in Fact broad access to your
money and property. Just as you would not give your car
keys to a stranger, you would not give power of attorney
to someone you do not trust completely. The wrong person
could waste or steal all of your money and, as a
practical matter, there might be nothing you could do
about that.
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