Power of Attorney

Q. What is a Power of Attorney?

A Power of Attorney designates someone to act on an individual’s behalf to manage financial affairs. The Power of Attorney can be specific to a certain task or broad enough to cover many financial duties. A Power of Attorney is established through a notarized signature on a legal document that designates the responsibilities to be given to the responsible party (attorney in fact).

Q. What responsibilities may be included in a Power of Attorney?

• Pay reasonable charges for support of the client and the family
• Pay debts
• Possess and manage the estate
• Collect Social Security, Medicare or other government benefits
• Manage retirement accounts
• Collect debts and claims due the client, including inheritances
• Invest funds
• File and pay taxes
• Handle transactions with banks and other financial institutions
• Buy, sell, maintain, pay taxes on and mortgage real estate

Q. What makes the Power of Attorney durable?

A Power of Attorney becomes “durable” by including a statement that the Power of Attorney document remains in effect if the individual becomes incapacitated. If this statement is not included, the Power of Attorney automatically ends if the individual later becomes incapacitated.