Austin Probate Lawyer

Power of Attorney: What is it and Why Should I Care?

A power of attorney document, valid in all states, basically gives another person the right to take certain actions on your behalf. In other words, that person would have the authority to do things as if they were you. Power-of-attorney may be limited to a certain activity (such as selling your car) or generalized, which allows a designated person to act for you in a wide range of situations. Although it can be effective immediately, it may also be dependent upon a certain, future event (such as your death or incapacitation).

The person you give power-of-attorney to is known as your “agent” or “attorney-in-fact.” They will be entitled to take any action named in the power-of-attorney document in your place. This may include such things as buying or selling assets, signing titles or deeds, or opening and closing bank accounts, just to name a few. Often, your agent will be required to produce the power-of-attorney document as proof that they can make a transaction.

A power of attorney can be used for several purposes. For example, if you are concluding some sort of deal or transaction but are unable to be personally present at the proceedings, you may wish to give power-of-attorney to someone you trust who can be there. It can also be used for more serious matters. If you should ever become unable to communicate or manage your own affairs, personal or business, a court may have to assign a person to act for you, called a guardian or conservator. The problem, of course, is that you will have no say in who the court appoints to this position. However, with a power-of-attorney in effect, the choice is yours alone.

If you would like to learn more about issues such as power-of-attorney, wills, trusts, or estate planning, contact one of the experienced probate lawyers at Slater, Kennon & Pugh LLP right away.