A "Durable General Power of Attorney" is a document by which you authorize another trusted individual to act on your behalf during your lifetime. The powers granted by a Durable General Power of Attorney are effective immediately upon signing the document and continues in effect even you later becomes legally incapacitated, mentally incompetent, or otherwise disabled.

The Power of Attorney document is a very important document because it gives your trusted agent the authority to make any legal, financial and personal decisions for you if you are no longer able to do so yourself due to physical disability or mental incapacity. Aside from an incapacitating illness, an absence from home could also make this document valuable to ensure that all your financial matters can be handled appropriately in your absence.

As long as you are mentally competent to do so, you may revoke the Power at any time.

The Power of Attorney document may be as restrictive or comprehensive as you choose. For example, you may wish to give authority to pay bills only. Or you may include the authority to sell property, file tax returns, even make gifts of unlimited amounts, among other powers. Additionally, the Power of Attorney does not take away from your power to act on your own behalf. For example, you may continue to conduct your own financial transactions or make gifts if your desire to do so. However, the ability for you to take care of such matters would cease if you become mentally incompetent or physically incapacitated. This is where the word "durable" in the title of the document comes into play, as a "durable" Power of Attorney authorizes your Attorney-in-Fact to act on your behalf despite your incompetence or incapacity.

Banks.

Some financial institutions (i.e., banks, brokerage houses, etc.) might honor only their own Power of Attorney forms. It is advisable to sign a Durable Power of Attorney specific to each financial institution in which you have an account at the same time that you sign a Durable General Power of Attorney for your other personal matters.

Governmental Agencies.

Governmental agencies, such as the Social Security Administration ("SSA"), the Veterans Administration ("VA"), or the Internal Revenue Service ("IRS") require the particular agency's special Power of Attorney form, or, at a minimum, that your general Power of Attorney form contain the special wording required by each agency's particular form. If possible, sign separate Power of Attorney forms for these agencies at the same time you sign a general Power of Attorney form for your other matters.

Out-of-State Powers of Attorney.

If you own substantial property out-of-state, you may wish to inquire about signing Powers of Attorney (which are state-specific) in those states as well, as other states might not accept a Power of Attorney drawn up under New York State law.

Note that the agent appointed under Power of Attorney is not empowered to make health care decisions for you. For this purpose, it is necessary to execute another document, call the Health Care Proxy.

Call us today at 718.261.8803 or contact us online to prepare this helpful document that expresses your wishes.