Most people think of the will as the cornerstone of their estate planning, but it is far more likely that you may need to activate a power of attorney document first. A durable general power of attorney is usually the document that your loved ones may need to take action if you are unable to do so. This document authorizes someone else to act on your behalf while you are still alive, and it immediately expires when you pass away. A durable general power of attorney usually only gives authorization relating to legal and financial matters, meaning that you might also need a separate health care power of attorney for medical authorization.
Two Roles of a Power of Attorney Document
There are two major roles in an established power of attorney document; an agent and a principal. The principal is the person who creates the power of attorney and gives formal authority to the other person known as the agent or the authority-in-fact.
Most power of attorney documents are created when the principal is unable to act for themselves due to mental incapacity or physical absence, or is unwilling to act for themselves simply because they have a preference for the agent managing their financial affairs.
It can also be used for matters of convenience. For example, a spouse may provide a power of attorney to the other spouse to handle everyday matters, such as making changes to bank accounts, managing loans or health insurance.
Contact a Massachusetts Estate Planning Lawyer
If you have not yet created a power of attorney document, schedule a consultation with an experienced and knowledgeable lawyer in Massachusetts today.
