Every adult (yes, even an 18-year-old) should have a power of attorney. Incapacity is unpredictable. It does not discriminate by age, gender or socioeconomic status. A power of attorney allows someone else to step in and take care of your decisions and affairs when you cannot do so for yourself. Creating these POA documents is referred to as incapacity planning and it is an integral part of overall estate planning.
There are two main types of power of attorney documents – a Healthcare POA and a Financial POA. Each of them allows you to designate a trusted individual to make decisions on your behalf. This designated individual is called the agent. The powers that you grant to your agent can be very specific or very broad. It all depends on the wording of the POA documents.
Maryland law generally follows the Uniform Power of Attorney Act created in 2006 and adopted by many states to provide more universal rules. Some of those uniform provisions include:
- Power of attorney documents become valid once they are signed; however, you still maintain control over the powers of the agent while you are still of sound mind.
- In order for your agent to be compensated for serving, those terms must be stated explicitly.
- Others cannot be held accountable for upholding decisions made under a POA so long as the document appears to be legitimate. This includes banks and medical providers.
Some common powers conveyed under a financial POA include:
- Ability to file your tax returns;
- Making investment decisions;
- Paying bills;
- Managing real and personal property:
- Applying for public benefits on your behalf;
Some common powers conveyed under a healthcare POA include:
- Choosing appropriate medical care (these may require approval of the financial POA)
- Choosing where you live (nursing home, in-home care, etc.)
- Choosing caregivers.
Agents cannot do any of the following under a POA:
- Change your will.
- Vote in a public election for you.
- Make any decisions on your behalf after you die. All authority granted under a POA terminates at your death.
Being an agent under a POA is a huge, fiduciary responsibility. If someone decides they do not want to serve any longer, the steps to resign are typically spelled out in the document. Alternates or successor agents should be named in the POA who can step in after a resignation is tendered.
For more information on incapacity planning or assistance in properly resigning from an existing POA, contact the experienced attorneys at Stouffer Legal in the Greater Baltimore area. You can schedule an appointment by calling us at (443) 470-3599, emailing us at office@stoufferlegal.com, or register for an upcoming free webinar using the link below:
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