What is a power of attorney? A power of attorney is a document that gives someone else, called your agent, the authority to act for you under certain circumstances.
Example. Bill has one child, Charles. Bill wants Charles to handle his financial matters if Bill ever becomes unable to do so himself. Bill signs a power of attorney authorizing Charles to be his agent and giving Charles the legal ability to handle all of Bill’s financial affairs.
What Decisions Can Your Agent Make?
A power of attorney allows you to state what your agent will be responsible for by designating what powers they have. You may grant them the authority to act on your behalf with the power over:
· Real property transactions;
· Tangible personal property transactions;
· Banking and other financial institution transactions;
· Business operating transactions;
· Retirement plan transactions;
Many people mistakenly believe that estate planning only involves getting their last will and testament in place. However, a will does nothing for you in the event that you become incapacitated during your lifetime. You need to make certain that you have the proper power of attorney documents in place, in accordance with the laws of Texas, which may differ from other states.
Justin T. Crain is an estate planning attorney in the Plano, Texas office of Thomas Walters Estate Planning where he provides legal services including Wills, Trusts, Gun Trusts, Guardianship Administration, Probate, Estate Administration, Medicaid Planning and Nursing Home Planning to those in the surrounding areas of North Texas.