A Power of Attorney is a legal document that allows you to give someone else the ability to act on your behalf.
The most common example of this is the General Power of Attorney that enables your named agent to conduct negotiations and sign documents in real estate or business matters in your stead.
But in estate planning, the Power of Attorney takes on a very different role.
You can use Powers of Attorney to enable someone to speak on your behalf with regard to medical treatments, for example or to designate someone to pay your bills if you become incapacitated.
And this is where a Springing Power of Attorney can come in handy.
A General Power of Attorney is automatically revoked if you become mentally disabled. This ensures that someone does not suddenly have “free reign” if you suffer from a stroke or become otherwise incapacitated.
But if that were to happen, who would pay your bills? Who would handle your creditors? A Springing Power of Attorney grants these rights and only allows the POA to be effective if you suffer a disability.
So, as long as your mentally capable of handling your own affairs, the Power of Attorney lies dormant and the agent you’ve chosen has no authority at all. But should something happen to you and you’re no longer able to speak on your own behalf, a Springing Power of Attorney could ensure that your financial affairs continue to be handled appropriately.
To learn more about Powers of Attorney and planning for disability, contact our office today.