A Power of Attorney is a legal instrument that is used to delegate legal authority to another. The person who signs (executes) a Power of Attorney is called the Principal. The power of Attorney gives legal authority to another person (called an Agent or Attorney-in-Fact) to make property, financial and other legal decisions for the Principal.

A Principal can give an Agent broad legal authority, or very limited authority. The Power of Attorney is frequently used to help in the event of a Principal's illness, incompetence, disability or in legal transactions where the principal cannot be present to sign necessary legal documents.

Powers of Attorney are frequently used to plan for a Principal's future incapacity or disability and loss of competence resulting, for example, from Alzheimer's Disease or a catastrophic accident.

By appointing an Agent under a Power of Attorney, the Principal is setting up a procedure for the management of his or her financial affairs in the event of incompetence or disability. A Power of Attorney enables a Principal to decide in advance who will make important financial and business decisions in the future. It is also helpful in avoiding the expense of having a court appoint a Guardian or Conservator to handle the Principal's affairs in the event of incompetence or disability.

A Power of Attorney can be used to grant any, or all, of the following legal powers to an Agent:

• Buy or sell your real estate
• Manage your property
• Conduct your banking transactions
• Invest, or not invest, your money
• Make legal claims and conduct litigation
• Attend to tax and retirement matters
• Make gifts on your behalf

While you are not required to hire a lawyer to prepare your Power of Attorney, it may be wise to do so. A Power of Attorney is an important legal instrument, and the careful consumer will consult a lawyer who can:

• Provide legal and other advice about the powers that are appropriate to be delegated;
• Provide counsel on the choice of an Agent;
• Outline the Agent's legal and fiduciary obligations while acting under a Power of Attorney; and
• Ensure the Power of Attorney is properly executed and meets all legal requirements.

A Durable Power of Attorney is a mechanism for allowing another person to manage your financial affairs. This is different from a joint tenancy bank account, which is often misguidedly used by people as a management device in the event of incapacity. Unlike joint tenancy, a Durable Power of Attorney does not give your attorney-in-fact legal access for his own use, rather your attorney-in-fact must use your assets for your benefit.

At Duvel & Duvel, we want to insure that your personal matters are handled appropriately and professionally. Please call us for a free consultation.

TO SET UP A FREE CONSULTATION, CONTACT US ONLINE OR CALL US AT (714) 542-5100.