Should I Have A Power of Attorney?

What is a Power of Attorney?

A Power of Attorney is a way to grant someone the authority to act on your behalf concerning property and financial matters.

Who executes a Power of Attorney?

When you sign a Power of Attorney, you are called the "principal". The person who is authorized to act on your behalf is called the "agent" or "attorney-in-fact".

Who should I authorize as my
agent?

Your agent owes the principal the utmost care, honesty and loyalty. Therefore, you should choose someone completely trustworthy as your agent.

When should I execute a Power
of Attorney?

You should consider executing a Power of Attorney if you are 18 or older and anticipate the need to transact business or otherwise deal with your personal or real property. The Power of Attorney enables your agent to act at your direction if you are away from home or to act for you if you are incapacitated.

What are the risks?

Although your agent has a duty to keep records, account and report his or her actions to you, a risk exists that an agent will not follow your instructions or will behave dishonestly and use your property for the agent's personal gain. Such an agent could then be subject to criminal or civil penalties. You can also take away the agent's future authority by revoking the Power of Attorney.

What are the benefits?

If you are temporarily out of the area or are incapacitated due to injury or illness, the agent can manage your finances and conduct your personal business. Without a Power of Attorney, no one would have authority to act for you concerning any individually owned personal property or any of your real property. If you lose the ability to manage your financial affairs and you do not have a Power of Attorney, the Court will appoint a guardian for you, which can be both expensive and time consuming.

What powers can I grant to an
agent?

The individual powers are defined in the General Obligations Law and must be selected and initialed by the principal. Some examples are real estate,

banking, stocks and bonds, insurance and tax matters. You cannot grant an agent authority to make decisions about your personal life style, living arrangements, or health care.

How does the agent perform his or her duties?

The agent must usually present an original or certified copy of the Power of Attorney to the bank (or other third party) relying on the agent's authority before signing any banking (or other document) on your behalf.

What happens when I die?

Your agent's authority ends immediately. Upon your death, an executor will be appointed to manage your estate according to the terms of your Will.

Must I see an attorney to execute a Power of Attorney?

A Power of Attorney must be acknowledged in front of a notary public. While statutory forms are available which can be signed without seeing an attorney, you may find that an attorney can answer your questions, instruct your agent about his or her duties, provide advice about the powers to be granted, tailor it to your needs, and address concerns about safeguarding the Power of Attorney.