Have you ever thought about the most important document in your estate plan? While you might consider awarding your will with this title, it could be a power of attorney. In fact, in many instances, it is a financial power of attorney. A financial power of attorney allows another individual to make financial decisions on your behalf in the event you cannot.
Texas has a variety of types of power of attorney, including:
- General power of attorney
- Limited power of attorney
- Healthcare power of attorney
- Financial power of attorney
Today, we are going to answer some frequently asked questions about establishing a power of attorney.
What Is a Power of Attorney?
A power of attorney (POA) is a legally binding document that permits another individual, called the agent, to make decisions on your behalf. Anyone who wishes to allow another person to make decisions for them in a certain area of their life can establish a POA.
You may want to obtain a POA if you are getting older and need help handling your financial affairs. You might also want to establish one if you become physically or mentally incapacitated and need help making decisions.
What Are the Different Types of POA?
Here is a general overview of some of the different types of POA available in Texas:
This POA gives an agent the ability to make decisions for you for a limited period or specific purpose. For example, if you are out of town, you could give someone else the legal right to signa deed for a piece of property.
A general POA is more comprehensive and allows an agent to make more decisions on your behalf, including financial decisions. This type of POA will terminate when you die or are incapacitated.
An agent can make financial decisions for you under this POA, such as paying your bills, completing financial transactions on your behalf, and depositing money.
This POA allows a representative to make decisions about your health and wellness in the event you become incapacitated and cannot do so yourself.
Limited power of attorney: This POA grants the agent the power to act in a limited capacity. For
How Do I Obtain a POA in Texas?
The first step to obtaining a POA is to consult with an experienced lawyer. From there, you will need to determine which type of POA makes the most sense for your situation. Then, you can complete the necessary paperwork, and take the forms to a notary. If you have any questions or concerns during this time, your lawyer will be able to assist you.
What Happens if I Do Not Have a POA in Place?
If you were to become incapacitated or die and you have not appointed someone to make decisions on your behalf beforehand, your loved ones will have to deal with complications. In this situation, the court will need to choose a guardian or conservator to fill this role. The issue here is that your family cannot put in their input and help decide who this person should be. This is a lengthier process and could prove to be time-consuming and stressful.
Contact our firm online or call us at (512) 768-9737 to schedule an appointment today to get started on the POA process.