Power of Attorney 101

A power of attorney is a key estate planning document. The power of attorney is crucial to grant a trusted party the authority to effectively make legal, financial, and medical decisions on your behalf in the event you are unable to care for yourself. The durable power of attorney and the medical power of attorney documents allow you to protect yourself. Unfortunately, there is a considerable amount of misinformation and confusion surrounding exactly what an agent with power of attorney can and cannot do. While the power of attorney does give substantial authority there are a series of limitations as well, which can differ from state to state.

Who Can Be An Agent With Power of Attorney?

In general, a mentally competent person has the authority to select whomever they want to serve as their power of attorney. According to Texas Law, there are no limitations against a convicted felon from having power of attorney. Likewise, in Texas, you can appoint a company or organization the power of attorney instead of an individual. There are some occasions when a doctor can override the power of attorney, while the circumstances are limited. A doctor can refuse to honor a power of attorney if they feel that the agent is not acting in the best interest of the patient. This however can lead to litigation.There are no restrictions on who can be the agent, it can be a partner, a friend, a beneficiary, a sibling or co-worker. As long as you are of sound mind when you draft the legal document you have the choice on who will be your agent.

Can You Change A Power of Attorney?

You can in fact change a power of attorney as long as you are still mentally competent to do so. You can not only change, but you can also revoke a power of attorney. The power of attorney can also be challenged through litigation if there is some sense that the decision was made under duress.

What Can A Power of Attorney Not Do?

A normal power of attorney cannot give the right to make medical decisions for you, you would need to have a medical power of attorney in place to do so. A power of attorney cannot override a living will. A valid living will takes precedence over the decisions of a power with power of attorney. Likewise, a power of attorney cannot change your will. An agent of a power of attorney cannot transfer money to themselves, open a joint bank account or borrow money. Additionally, the power of attorney is extinguished the moment a person passes away.

It is important to ensure all of your affairs are in order and that your legal documents are signed and filed as to what your wishes are.