There is a lot of confusion on the need for Power of Attorney and equally important on the revocation of it. Generally, a need for establishing a Power of Attorney (PoA) is most necessary in case something were to happen to you. For example, if you have had an accident or illness that impacts your ability to make financial or healthcare decisions for yourself, you will need someone to make those decisions for you.
You should consider having a power of attorney, regardless of age or financial situation. You will always need that level of decision-making if you are not able to make it yourself, even if you don’t have a lot of assets.
A power of attorney is a legal document that gives someone you trust the right to make financial or health care decisions for you. This trusted person does not have to be a lawyer to be your attorney, it can be a family member, friend or a trusted professional of your choice.
Without an attorney for property, your family, including your spouse, cannot automatically step in to make financial decisions for you. They might have to go to court to become your court-appointed guardian. As a worst-case scenario, the government may have to make decisions for you, but only as a last resort.
There are two types of powers of attorney:
Personal care
An attorney for personal care can make decisions about your:
- health care
- housing
- other aspects of your personal life such as meals and clothing
If you do not have an attorney for personal care, your family can make some decisions, but not all.
Property
An attorney for property can make decisions about your financial affairs including:
- paying your bills
- collecting money owed to you
- maintaining or selling your house
- managing your investments
You should choose a person you trust to act as your attorney, such as a family member, spouse, or long-time friend. Some people choose a lawyer or trust company. Talk to the person or company before appointing them to make sure that they will take on this responsibility. Make sure they understand how you want your financial affairs or personal care handled.
You should never feel pressured to make someone your attorney. Speak to a lawyer about your options if you do not have anyone you are comfortable appointing.
You can make a power of attorney document yourself for free or have a lawyer do it. The Time Secured app provides a few editable templates that you can fill out and scan for safe keeping, including revocation of Power of Attorney if needed.