Who Needs a Durable Power of Attorney?
Creating a power of attorney document is often an important component of estate planning in Canton and throughout Connecticut. There are different types of powers of attorney that a person can create, but most often a person will create what is known as a durable power of attorney. If you have never created a power of attorney before or been named as an agent in another person’s power of attorney, this terminology can be confusing. What is a power of attorney for, and what makes it durable? And who needs a power of attorney? Our Canton estate planning lawyers can assist you with all of these questions, and we can tailor your estate planning process to your individual needs.
What is a Power of Attorney?
A power of attorney is a type of written legal document through which one person (the “principal”) appoints another person (the “agent”) to act on behalf of the principal. Typically, the agent has the authority to act on behalf of the principal in different types of financial matters, but also in health care matters (when a principal appoints a health care representative in a type of document in Connecticut known as an advance directive).
Depending on your needs, you may authorize an agent to act on your behalf only in very specific circumstances (such as completing a transfer of a particular real estate parcel), or, much more broadly, you might authorize an agent to make all financial decisions and to act on your behalf in all financial matters in the event that you become incapacitated and cannot enter into legal agreements concerning your finances yourself.
Powers an Agent Can Exercise on Behalf of a Principal
The powers that an agent can exercise through a power of attorney on behalf of a principal will depend entirely on the powers authorized in a particular power of attorney. The types of powers that can be authorized through a power of attorney in Connecticut include but are not limited to the following:
- Paying bills and exercising powers related to the principal’s accounts;
- Accessing and having power over the principal’s digital assets, including the principal’s user accounts;
- Making financial gifts on behalf of the principal;
- Creating or amending beneficiary designations for the principal;
- Establishing a trust;
- Revising the terms of a trust where possible;
- Exercising general fiduciary powers; and
- Managing the principal’s intellectual property.
If you want to authorize another person to make any of these decisions for you in the event that you become incapacitated, or to be able to act on your behalf in any of these matters more broadly, then you need a POA.
What Makes a Power of Attorney “Durable”
Do you need a durable POA? To know that, it is essential to know what “durable” means in this context. In short, a durable power of attorney is one that survives the principal’s incapacity. In other words, a durable power of attorney allows your agent to be able to act on your behalf in the event you become legally incapacitated.
If you want this type of POA to take effect only in the event of your incapacity, then you will also want the POA to be “springing.”
Contact a Canton Estate Planning Attorney for Assistance
Do you need to draft a power of attorney document or to create other important estate planning documents? An experienced Connecticut estate planning lawyer at the Law Office of Brian S. Karpe to discuss your estate planning needs and to begin working on a power of attorney and other essential estate planning documents today. Contact us for more information about how our firm can assist you.
Sources:
cga.ct.gov/2023/pub/chap_802e.htm
