Updating Your Power of Attorney: 5 Essentials You Should Consider

Don’t wait until a crisis happens to update to your Power of Attorney — do it now.

Life happens, and things change. People that we were once close may move away, or sometimes conflict separates us. If something like this happens with the person you gave a Power of Attorney to, it can cause problems. 

If a crisis occurs before you’ve updated your Power of Attorney, it will create unnecessary stress and confusion.

Let us help you avoid these uncomfortable situations by showing you how to update your Power of Attorney today.

What is a Power of Attorney?

A Power of Attorney (POA) is a written authorization to represent or act on another’s behalf in healthcare decisions, private affairs, business, or some other legal matter. The person who authorizes the other to act is the principal, grantor, or donor of the power.

If you don't have a proper Power of Attorney in place, a judge will make decisions for you should you become unable to make your own. 

It’s vital you name someone you love or, more importantly, trust — someone with your best interests in mind — as your power of attorney. Otherwise, you don’t know who may decide your fate. 

Types of Power of Attorney You Can Have

If you give someone a Power of Attorney, your attorney-in-fact also called an agent, acts on behalf of you when you can’t. There are different types of Powers of Attorney. The type you use when you assign your agent will determine what they can do and how much they can act for you. 

There are six basic types of power of attorney.

What Can a Power of Attorney Do?

When you name someone as your power of attorney, you give them legal permission to deal with any of your financial institutes and medical teams as if they are you. 

Here is a short list of things that your agent will be able to do with a power of attorney. 

• Act on your behalf at financial institutions
• Buy or lease property in your name 
• Make medical decisions for you
• Take temporary custody of your children 
• Receive your mail

Mostly, anything that you can do, your agent will be able to do with a power of attorney. 

But something to note is that one thing a Power of Attorney cannot do is take away your power to act. A Power of Attorney is not the same thing as a Conservatorship, where the court takes away your ability to make decisions after you have become incapacitated. 

When Do You Need a Power of Attorney?

You need a Power of Attorney when you need someone else to be making decisions for you. In situations where you are unable to communicate your wishes, a Power of Attorney will communicate them for you. 

If you cannot make medical decisions for yourself, you need a Power of Attorney to legally allow a person you choose to make those decisions for you, according to your wishes. 

You also would need a Power of Attorney grant a trusted agent to sign financial documents on your behalf.

Who Can Act as My Power of Attorney? 

You cannot list someone as a power of attorney who is incapacitated themselves. They will be unable to perform the tasks asked of them. But other than that, there are few limits on who can be your agent. 

Anyone can act as a power of attorney as long as they are over 18. But most people choose their spouse, children, or a close relative to be their agent. 

It is best to consider more than just your relationship, though. In the case of a power of attorney, trust, integrity, and responsibility are more important than how close you are to someone. 

How Can I Update My Power of Attorney?

The best way to update your power of attorney is to speak with an Elder Law and Estate Planning Attorney. Their team will offer advice and guide you through the entire process. 

If you find yourself in a position where you need to terminate the powers you gave your agent, you can file a Revocation of Power of Attorney. The termination is valid once the agent is notified.

Or if you become incapacitated and your family members are concerned that your agent is not acting on your best intentions, they can hire an attorney to contest it.

You will need to store a copy of all legal documents associated with the Revocation of Power of Attorney in a safe place. This document will act as evidence of your intentions, should they ever be questioned. 

Is Power of Attorney the Only Document I Need?

A Power of Attorney is not the same thing as a Will or a Medical Directive. You will need separate documents for these. 

A Power of Attorney can legally authorize someone to make medical decisions for you. If you want to ensure your personal choices for end-of-life treatment are honored and that your assets are appropriately divided, you will need to have the following documents prepared.  

Living Will is a legal document that outlines your choices for end-of-life medical treatments, such as medications and interventions. With a living will, you can refuse things like resuscitation, feeding tubes, organ donation, and or breathing machines. 

This ensures things are done according to your wishes. It clarifies how you want your Power of Attorney agent to handle these situations. No matter what, even if your agent doesn’t follow through, this outlines your wishes, so it is recommended that you have one. 

Last Will and Testament is the legal document that will help lawyers know how to handle your estate. This document designates how to distribute what assets you might have and is the last word in any subsequent disputes.

Without a last Will and Testament, your property will be distributed by the state upon your death. Your Power of Attorney agent may express your wishes, but they may not be honored. 

5 Essentials to Consider When Choosing a Power of Attorney

Relationships are not the most important thing when considering who to select as your Power of Attorney agent. Instead of picking who you are closest to, you need to consider who you can trust the most. 

In the list below, you will find several things to think about as you choose your agent. 

• Trustworthy You need to know your agent is honest with you and will act with integrity on your behalf. 
• Reliability: The person you pick should be someone who will perform the tasks they need to do, both dependably and on time. 
• Financial Management Skills Your Financial POA agent must understand budgets and have a track record of fiscal responsibility to ensure your money and assets are handled correctly. 
• Detail Oriented You’ll need someone who pays attention to details. Someone meticulous who won’t overlook something crucial.
• Assertiveness You also need to select someone willing to stand up for you and act as your advocate. 

Whoever you choose, make sure you consider all of these things. Fairness and familial relationships aren’t as important as picking someone who will do the job.

Let Us Help You Navigate Life After 50

Aging Life Care Managers have devoted the last 20+ years of business to ensuring older adults receive a quality of care.  

At Aging Outreach Services, we provide Aging Life Care Managers who help identify resources, come up with care plans, act as healthcare advocates, and so much more. 

“AOS gave us all a lot of vital information on preparing for aging in such a way that we can enjoy our “golden years” to the fullest”- Jeanie.

You can learn more about what our Aging Life Care Managers can do for you or your family by requesting your free consultation now.