You’ve probably heard the phrase a “Power of Attorney” before, but have you considered what it might mean for you? A Power of Attorney authorizes another person to make financial and business decisions on your behalf if -- and only if -- you become physically or mentally incompetent. This is not legal action that is taken lightly, as a finding of incompetence must be confirmed by your treating physician.
Why bother with creating this document? Suppose, God forbid, you step off the curb and are hit by a bus. You are in a coma; you may recover, maybe not. In the meantime, someone must endorse and deposit salary or disability checks made out to you; someone must hire an attorney to file a claim for personal injuries on your behalf; someone has to run your business; or someone has to deal with your health insurance company. A Power of Attorney names that someone – not necessarily a lawyer, but rather someone you trust -- to act in your best interest, as if you could make those decisions on your own.
Your spouse does not automatically assume these powers. Of course, you could give your spouse a Power of Attorney, but here you have the same problem as with a will: suppose your spouse predeceases you? You need to name an alternate.
If you have adult children, you can give one (or more) of them this authority. Your decision should be discussed with your family before the necessity arises. Everyone should know up front who will have this authority, so that there is no squabbling between siblings over how to manage your affairs.
If you have minor children, then your alternate should be a trusted relative or advisor. Do you want your college-age kid to assume this heavy responsibility?
If you need help designating a Power of Attorney, setting up a will, and ensuring your wishes are carried out for your family, turn to the attorney you know you can trust — Steven B. Rosenthal. Call or email The Rosenthal Law Firm for your free consultation today.