As you turn into an adult, you begin to realize that life is full of unpredictable moments and experiences. Although today may seem like a good day, tomorrow may not be the best. While a decline in your health can be gradual, other matters — such as an accident — can happen in an instant.
In this blog, we will discuss how a power of attorney can help prepare you and your family for life’s unexpected events.
What is a power of attorney?
Power of attorney (POA) is an essential estate planning tool that enables you to appoint an “agent” to make legal decisions on your behalf. Depending on your circumstances and the type of POA you establish, your agent can:
- Pay your bills
- Manage your bank accounts
- Handle your real estate transactions
- Sign your legal documents
- Make medical decisions for you
Since you are the “principal” or the creator of POA, it is entirely up to you what type of powers you authorize your agent to carry and if their POA has an expiration date.
What are the legal requirements for creating a POA?
To create a POA in Texas, you must be at least 18 years of age or older and of sound mind. Your power of attorney must contain specific details about your agent’s type of POA (e.g., limited POA, durable POA, medical POA) and signed before a notary public.
Can my agent tell me what to do?
No, having a POA does not mean that your agent can dictate what you can and cannot do. They can only act upon the important matters that you need legal assistance with.
Since their authority can be limited or broad, it is highly ideal to consult with an estate planning lawyer first before choosing your agent and signing your POA.
Can I revoke a POA?
Yes, as long as you are mentally capable, you have the right to end your POA at any time. If you decide to do this, you must inform your agent and the people they are working with that you are revoking the POA.
By understanding what a POA is and how it can help your situation in the future, you can make informed decisions that can suit your specific needs and safeguard your family’s best interests.
