Here is a little orientation for you. A power of attorney is a legal document that gives you the right to transfer power from you to another. This means that the owner of the financial establishment in question – also called the grantor or principal- give the exclusive right to the handling of the financial and legal affairs of the establishment to another person entirely. This person who then stands in place of the grantor is called the attorney in fact. The attorney in fact may be a single person or may alternatively be a group of individuals.
There are two kinds of power attorneys based on a series of factors. You will have to make your choice based on the kind that favors your present or current situation;
• The first is the springing power of attorney: this is the power of attorney that is only activated in the incapacitation of the grantor or the principal. It is not decided by anyone in the contract but by the doctors, the legal authority or other medical personnel. The process is that the grantor must first be certified mentally incapable of running things in the establishment further, and then the power of attorney makes the transfer to the attorney in fact. Therefore the attorney in fact then stands in the gap for the grantor and takes the helms of affairs and ensures that the financial situation runs as smoothly as the grantor would have liked. There is however a setback to this POA though: it tends to delay normal financial progress from the other end until all the legal processes have been cleared and the bills have been signed and approved.
• There is of course the durable power of attorney: this comes into effect the moment it is signed, an improvement on the springing power of attorney. This means that the attorney in fact will begin to function for the grantor the moment the documents are all signed and approved.
There are however certain things you have to put in place before you make the decision for a power of attorney bill:
1. Who has the right to make the POA?
2. What are the requirements before the power of Attorney can be legally approved? 3. In what cases can it be approved and is applicable?
4. What kind of traits is sought for in the people who are to stand as Attorneys in fact?
In considering all these, you should not forget that the power of attorney is very sensitive, considering the utmost power it will confer on the next individual. Ensure that the person who stands as your attorney in fact is trust worthy and that the person has a good standing with the law. Make the wise decision all through and yo9unshould do all right.
State clearly the amount of authority you want to give tour appointee, and make sure that it is approved by the appropriate legal body before you sign it off.