A power of attorney is a legal document used by a person to give written power of attorney to another person in making decisions on behalf of that person related to financial, health, personal, or other purposes related to the law. A power of attorney is useful if you are sick or physically disabled, or when you want someone to make decisions for you in your absence. This power of attorney can also be prepared if you wish to travel abroad and have someone to handle your affairs while you are away.
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Part 1 of 5: Deciding When to Use a Power of Attorney Document or Become a Guardian
Step 1. Talk to the people closest to you (parents, spouse, or children) about this power of attorney
If you want to prepare for someone(s) to make decisions for you, talk to them that you want them to receive power from you. Choose the person(s) you believe will honor your desire to be the “receiver” i.e. the person(s) you will give power to.
- If you want to get a power of attorney from someone, you need to ask for the approval of the person who will transfer their rights to make decisions.
- If someone close to you has an incurable disease and one day will no longer be able to make financial or health decisions for themselves, he or she can sign this document to authorize someone else.
Step 2. Decide whether you need to create a power of attorney or become a trustee
Before making a power of attorney, one must understand well what it means to give power to another person. Therefore, you need to discuss this in advance to ensure that the person who will give the power of attorney really understands this, including any decisions that will be made on his behalf.
- If the person closest to you is still mentally unavailable, but he has made a power of attorney for you or someone else of his own conscious will, this power of attorney can be used and no new power of attorney is needed.
- If your loved one is mentally unavailable and has never made a power of attorney of his own free will, he will need a conservator, or adult guardian, who will take care of all his legal requirements.
Step 3. Consider becoming a guardian or conservator
If you have to be the decision maker for someone who is unable to make decisions for themselves, you should go to court and ask to be appointed as a conservator or guardian. A person can obtain guardianship after being declared “legally incapacitated” by a court or unable to provide for their most basic needs. You can seek authorization from the court if you think someone meets these criteria.
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The court at the place of residence of a candidate for guardianship has the authority to decide on petitions for guardianship. Once the petition is filed, the court will schedule to hear testimony that:
- The guardianship applicant has met the requirements to become a guardian
- Candidates who will be under guardianship in permanent absence
- No one else is worthy of being a guardian
- Other interested parties, including potential trustees, may reject the petition for this trust. For example, if your elderly mother has dementia and needs guardianship, you can petition the court, but your mother has the right to refuse this guardianship, and you must be able to present facts to prove that your mother does have dementia so that you can have rights as guardians.
Part 2 of 5: Determining the Right Power of Attorney
Step 1. Determine whether the power of attorney made is related to financial aspects
Power of attorney in financial matters relates to the management of money from the giver-or the person who gives power to the recipient-to manage their assets. You must be able to submit this document to a bank or other institution if you are a beneficiary who is entitled to make financial transactions on behalf of the attorney.
Step 2. Determine whether the power of attorney made is related to medical aspects
A power of attorney in the case of medical treatment authorizes a person to make medical decisions for a person who is permanently absent. You must be able to submit this document to hospitals, doctors, and other places at the time you as the beneficiary have to make decisions for the attorney.
If you want to make a power of attorney in both financial and medical aspects, you don't have to authorize the same person for both of these things. However, these two power of attorney must be able to work together in acting to best serve your interests, so choose the most appropriate people
Step 3. Determine if this power of attorney is made to be “in effect forever
The power of attorney which is "in effect" will take effect immediately when signed by the power of attorney and remain valid if the person giving this power of attorney is permanently absent.
- For example, many people who are critically ill choose a power of attorney that is valid indefinitely because they want the power of attorney to be able to continue making decisions after they are no longer able to express their wishes, and because of their illness, this power of attorney has also taken effect immediately on when signed.
- If the word 'applies continuously' is not specifically stated, this power of attorney is null and void when the power of attorney is permanently absent.
Step 4. Determine if this power of attorney was made with a “expired period
A power of attorney with a "validity period" cannot be used until the date specified by the attorney. For example, if you make a power of attorney in financial matters when you want to go abroad, you can specify that this document is only valid on the date you depart.
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You can also combine a power of attorney with a validity period and will continue to apply. This power of attorney has not been valid until the date specified by the power of attorney (for example when he is permanently absent) and will remain valid for as long as the power of attorney is permanently absent. In this case, the power of attorney must be able to prove that the power of attorney is indeed in a condition of permanent absence before this power of attorney can be declared effective.
This power of attorney is not considered legal in every country, therefore you must check the legal provisions in force in your country before drafting this power of attorney
Step 5. Do not create a generally accepted power of attorney unless you are sure
This power of attorney will give power of attorney both in financial and medical matters to the power of attorney. You have to make sure that the power of attorney that you make is in accordance with your conditions. In certain situations, for example in the event of a critical illness, this power of attorney may be used.
Part 3 of 5: Selecting Someone as the Authorized Person
Step 1. Choose someone you can trust
Make sure that the person you choose as the beneficiary is someone who can really be trusted, in addition to having knowledge in finance and health because they will be the ones who will make decisions in terms of your finances and/or health care.
Step 2. Consider the age, health condition, and place of residence of the potential beneficiary
You have to consider these things because whoever you appoint as the beneficiary, will make very important decisions for you.
For example, the power of attorney who lives far away will find it difficult to have contact with your bank (if the power of attorney is related to financial aspects) or your doctor (for power of attorney related to medical aspects.)
Step 3. Consider the potential recipient's religion and lifestyle
In addition to choosing someone you can trust as the main consideration, also make sure that you make your choice based on moral and religious views so that the chosen person does not go against your wishes. Make sure your attorney is willing to put his or her personal beliefs aside in favor of putting your wishes first.
For example, there are those who strongly oppose the use of pacemakers, life support devices, nutrition and artificial fluids, while there are those who strongly support these practices
Part 4 of 5: Preparing Power of Attorney Documents
Step 1. Study the requirements in your country first
The requirements for making a power of attorney are basically the same in almost all countries, but some have to fill out a special form. You can learn whether your country requires filling out this form here. If you need help, use the services of a legal expert to help you and those closest to you to fulfill the requirements required in making a power of attorney. A power of attorney usually must:
- State clearly the identity of the giver (the person giving the power of attorney)
- State clearly the identity of the power of attorney (the person who will receive a certain power of attorney stated in the power of attorney)
- State clearly what legal actions are the authority of the power of attorney
Step 2. Download or write the required form
Many countries do not require legal documents to be made in a government format. However, in order not to be confused and both parties know exactly what authority is given, it is better to use a form template published by the state.
This particular form may vary by country, and there may also be different forms for different powers of attorney. For example, power of attorney for health care and finance issued in Wisconsin must use a special form
Step 3. Name the parties
This form must be filled out with the full name of the “authorizer” or person making the power of attorney and the full name of the “recipient,” or the person being authorized. The name of the other power of attorney may also be included if the first power of attorney acts not in accordance with the authority he has received.
Step 4. State the power given for what purpose
Make sure that you clearly and specifically state the power of attorney granted to the power of attorney, when this power comes into effect and when it expires (if it must be terminated.) Also state whether this document is valid forever or there is a validity period that must be set to avoid confusion.
- For example, instead of stating that the attorney “accepts authorization over the finances of the attorney,” write that the attorney “accepts the power to withdraw money and make payments from the principal's three bank accounts at: bank X, bank Y, and bank Z.”
- If this power of attorney is valid indefinitely, it is very important to ensure that the grantor and the recipient of the power of attorney have mutually agreed on the responsibilities and authorities to be transferred.
Step 5. List any powers not granted by the power of attorney
Based on the laws of certain countries, there are certain powers that cannot be transferred and this must be known by both the grantor and the recipient of the power of attorney. If a power of attorney mentions the transfer of power which according to law cannot be transferred, this power of attorney is null and void.
For example, even though the giver and the power of attorney have agreed, the power of attorney still cannot carry out the wishes of the power of attorney because this desire is not valid
Step 6. Gather witnesses
In some countries, the signing of the power of attorney must be witnessed by one or two persons. If this regulation applies in your country, make sure that the presence of witnesses is not only to pay attention when the recipient and authorizes sign the document, but they must also be willing to testify to the authenticity of this document.
- For example, a power of attorney issued in Florida must be witnessed by two persons, whereas in Utah there is no need for witnesses.
- Check here to see if the power of attorney in your country must be signed in the presence of witnesses.
Step 7. Prepare for a power of attorney cancellation if you change your mind
If you have made a power of attorney that is valid indefinitely, but you wish to terminate it, you can cancel this document in accordance with the legal provisions of your country by declaring that this power of attorney is no longer valid.
Talk to your lawyer so that this plan can be carried out properly. Also, you can learn more about this by searching online
Part 5 of 5: Securing Your Power of Attorney
Step 1. Consider hiring a lawyer to check your power of attorney
Legal experts can identify if there are legal issues that the layperson does not really understand about what to add or remove. For example, a legal expert will notice if a document uses ambiguous terms that can lead to confusion.
Step 2. File this document with a notary
Some countries require that your documents be notarized. Before authorizing the signing of this letter, a notary must first check the identity of the power of attorney. However, the notarization of the notary's signature will eliminate doubts and minimize the possibility of conflict from other parties who question the validity of this letter.
You can find information about managing this document by consulting directly with a notary, legal expert, or online
Step 3. Show this document to the institution that requested it
Financial institutions, such as banks and brokerage firms, do not want to accept a power of attorney until they have approved it first. They have requirements that must be met and the recipient of the power of attorney can only receive the power that has been determined. In order for the documents that you have prepared to meet the requirements, first show the draft to the bank or other financial institution to make sure that they will accept this document after you sign it.
Step 4. Save your power of attorney
Power of attorney is not kept in a government office, but should be kept in your home or in a safe deposit box so that it is ready to be shown if needed.
