Why Do I Need A Power Of Attorney?

Hello Lisa, My wife and I recently met with a lawyer to have our wills done. The lawyer told us we should also have “Powers of Attorney.”  We don’t understand why. Could you please explain why we should have these Powers of Attorney?   Thanks, Joe

Dear Joe,                                                                                                     

Thanks for your question. Many people share your confusion about the purpose of a Power of Attorney (POA). First of all, it is important to understand that there are two different types of POA’s that are central to most estate plans.

One type of POA is commonly called a Power of Attorney for Property. In this document, you name another person to handle your financial matters in accordance with your wishes if you become incompetent. This would include property such as bank accounts, investment accounts, real estate and the like. If you don’t have a Power of Attorney for Property, it may be necessary for your family to go to court and have a legal guardian appointed to handle your financial affairs.  

The other type of POA is referred to as a Power of Attorney for Health Care. If you are unable to express your wishes regarding what types of medical treatments you do or do not want, the person you name in this document will communicate your health care wishes to your doctors on your behalf. Describing the types of health care you do or do not want can be difficult, and selecting the right person to make these medical decisions is very important.

This column provides only a very brief synopsis of POA’s. Both types of POA’s should be tailored by your attorney to meet your personal circumstances and wishes. Also, other estate planning documents (such as a Revocable Trust) may be required to make sure that your desires are carried out in the event of your disability or death.  

If any reader would like to ask me a legal question, post it on Patch. You can also e-mail your question to me at lehmanlawoffices@aol.com. 

Best Regards, 

Lisa

DISCLAIMER:  Please be aware that this column provides only legal information of a general nature and is not intended as legal advice for any person, group of persons, or entity. You must always consult with an attorney with respect to your particular legal situation and circumstances.