Power of Attorney (POA) is a legal document that enables someone to make financial and medical decisions on your behalf. This person, called your agent, is allowed to make decisions if you are unable to because you become ill or incapacitated. Granting power of attorney is a serious decision, so it’s important to understand what it does and does not do. Many misconceptions about powers of attorney exist, and the Davidson Law Group is here to ease confusion. Today, we identify a few of the common myths.
I’m Young, and I Don’t Need a Power of Attorney
It’s common for young and healthy people to think they don’t need a power of attorney. But everyone over 18 can benefit from creating a POA, even if you don’t have many assets. In case of an emergency or unexpected accident, you want to have an agent who can handle your affairs. If something happens to you, nobody can pay your bills unless you legally empower them to do so. You can make a power of attorney as part of a comprehensive estate plan, and the Davidson Law Group will be happy to help.
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A Power of Attorney May Continue After Death
All powers of attorney end when the endorser passes. Once a person has died, the authority granted to the agent also terminates. However, a durable power of attorney can endure mental incapacity. A durable POA permits the agent to act on the person’s behalf even if he/she becomes mentally incompetent. If you have questions about a power of attorney, reach out to our legal team.
A Power of Attorney Requires You to Give Up Your Independence
Some seniors think that signing a power of attorney document means they forego their independence. They also worry that the agent could misuse their personal affairs. However, any designated person with a power of attorney is legally obligated to act in your best interest. If the agent mismanages your estate, legal consequences will result. While you have given your agent permission to make decisions for you, you still have the power to make decisions for yourself, and you can remove a POA at any time.
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Review Your Power of Attorney with the Davidson Law Group
If you’re looking to authorize a power of attorney or you want more information about estate planning, the Davidson Law Group can assist you. We serve the Dallas, TX area, with offices in Fort Worth, Allen, and Tyler. Contact us today to schedule a free consultation.