A Power of Attorney (POA) is a written authorization to represent or act on another’s behalf in private affairs, business, or other legal matters.
There are a number of myths that prevail in the industry today and some of these are the following:
Myth: Legally incompetent can sign a power of attorney
Fact – Someone can sign a power of attorney only if they are legally competent to do so. Legally competent – means that a person is qualified to serve as an administrator or as an executor. A judge decides whether one is legally competent or not based on qualified documents such as medical records.
Myth: A power of attorney grants the agent the right to do whatever with the estate
Fact: The agent who makes decisions that are in the best interest of the principal, which is the person who appointed the agent under the POA. The thing called “overriding obligation” aka “fiduciary obligation” works with POA, so that the appointed agent works to the best interest of the principal.
Myth: There is one standard power of attorney
Fact: There are multiple types of powers of attorney. One example is the DPA or the durable power of attorney, a document that allows the principal to give authority to another person (could be the principal’s agent or the attorney-in-fact). Another one is the health care power of attorney, which gives the attorney-in-fact the legal authority to make healthcare decisions for the principal.
Myth: A durable power of attorney can still be in effect after the principal’s death
Fact: A durable power of attorney dies with the principal. In other words, the legal authority granted to the agent terminates when the principal passes away. Note however that a DOA can survive mental incapacity.
For more questions on durable power of attorney Yucca Valley, CA, contact us at the Ficara Law Office -.
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