What's a POWER OF ATTORNEY?

Power of attorney is the authority granted by one person to another person to make decisions on their behalf. The power of attorney document would be signed by a person (the "principal") naming someone (the "agent" or "attorney-in-fact") as authorized to undertake actions such as managing financial affairs, making legal decisions, handling tax and legal issues and a broad range of personal and business matters.  That authority is sometimes granted immediately and is sometimes withheld until the occurrence of the principal's mental incapacity.  Power of attorney generally ceases upon the death of the principal.

So, what's the point?

A power of attorney can be extremely helpful when someone becomes incapacitated as it can allow for the agent to take swift and effective action to manage the affairs of the principal.  No cumbersome court process or administrative hurdles typically needs to be navigated.  There are of course some notable risks involved in giving authority to another person, but a power of attorney can be a very valuable tool and one we very frequently include in estate planning.