Power Of Attorney: Who Will Manage Your Affairs?

If you become incapacitated, the rest of the world keeps moving. The bills keep coming. Employees still need to work. Legal obligations do not suddenly cease.

Power of attorney allows someone to “take care of business” when you are still living but unable to attend to your own affairs. The experienced Salt Lake City lawyers of the Law Office of Penniann J. Schumann PLLC can help you create powers of attorney while you still have your health and your faculties so that your interests are protected if something should happen.

What Are Powers Of Attorney?

Power of attorney (POA) is a legal document granting authority to a trusted person to act on your behalf. That individual, called an attorney in fact, is empowered to manage your financial, business and legal affairs. Power of attorney can be broad or limited to specific matters. Depending on the terms, that person could:

• Pay bills
• Manage banking and investments
• Sign documents
• Make business decisions
• Sell property
• Hire professional help

Powers of attorney can be granted at any time if you are ready to turn over the reins, or it can be set up to “spring” at a future point if and when you can no longer manage your own affairs. A durable power of attorney means that the powers endure after incapacity until you either recover or pass away.

We also encourage clients to create an advance health care directive, which is essentially power of attorney for medical decisions on your behalf if you are unable to communicate your wishes.

Frequently Asked Questions On Power Of Attorney

Below are commonly asked questions about powers of attorney. 

How does a durable power of attorney differ from a nondurable power of attorney?

A power of attorney allows someone else, called an agent, to act on your behalf. The key difference between durable and nondurable powers of attorney lies in the duration of the authority. 

• A durable power of attorney remains effective even if you become incapacitated. This type of document is commonly used for long-term planning and helps ensure continuity if you cannot manage your own affairs. It is used for financial decisions, health care decisions or estate planning matters.
• A nondurable power of attorney ends if you become incapacitated or when a specific task or time period is completed. It is used for short-term or limited purposes.

Choosing the correct type depends on your goals and personal situation. An attorney can help determine which document best protects you and help ensure your intentions are legally enforceable.

Can my power of attorney agent make decisions that are against my wishes?

An agent is legally required to act in your best interests and follow the instructions outlined in your power of attorney document. However, problems can arise if the document is vague or if circumstances are not clearly addressed. Agents are generally expected to: 

• Follow the specific powers and limits written in the document.
• Act in good faith and avoid conflicts of interest.
• Make decisions consistent with your known preferences.

If your wishes are not clearly documented, an agent may have discretion that leads to decisions you would not have chosen. This is why careful drafting is critical. Working with an attorney helps ensure your instructions are detailed, enforceable and designed to prevent misuse or misunderstandings. 

What are the next steps if my designated agent is unable or unwilling to serve when needed?

If your agent cannot or will not serve, the outcome depends on how your power of attorney is written. Without proper planning, delays or court involvement may occur. Common solutions include:

• Naming one or more successor agents in the document.
• Defining how and when a successor takes over.
• Including procedures for resolving disputes or uncertainties.

If no backup agent is named, a court may need to appoint a guardian or conservator, which can be a time-consuming and costly process. A can help you structure your power of attorney to avoid these risks and ensure someone you trust is always authorized to act when needed. 

Arrange A Consultation To Discuss The Specifics

Power of attorney must be drafted before something happens. If you become incapacitated without a POA in place, your loved ones would have to go to court to petition for guardianship/conservatorship. That process is expensive and sometimes contentious.

With six decades of combined experience in estate planning law, our lawyers can help you take proactive steps and customize your powers of attorney to your wishes and circumstances. Schedule a consultation by calling our Salt Lake City law office at 801-839-4891, or contact us by email.