What is a Power of Attorney Drafting?
A power of attorney (POA) is a legal document in which one person (called a principal) appoints another party (an agent) to manage all their legal or financial affairs. In some cases, this can involve general authority, while in others it can include specific tasks.
If you need to draft a power of attorney, you’ll want to read the rest of this article to know which type is most suitable for your situation, important key terms included in a power of attorney, and how a lawyer will help you navigate the power of attorney drafting process for peace of mind.
What are Different Types of Power of Attorney?
There are various types of power of attorneys. These include:
- Health care power of attorney (HCPOA). This document gives the agent authority to make health-related decisions on the principal’s behalf. It usually comes into effect when the principal is incapacitated or otherwise unable to decide for themselves.
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Financial power of attorney.
Under this arrangement, the principal’s business and financial affairs are handled by another party. These can include tasks such as filing taxes or managing investment accounts. There are various sub-types of financial power of attorneys, such as:
- General POA. This lets the agent take over all matters as long as they are allowed by state law.
- Limited POA. This grants the agent authority to handle specific matters, and it’s usually valid for a specific period of time.
- Durable POA. The agent has authority over legal or financial issues on an ongoing basis.
What are Tips for Drafting a Power of Attorney?
There are specific tips to bear in mind when drafting a legally-valid power of attorney.
Put it Down in Writing
Although oral POAs can be considered valid in some states, it’s always recommended to write them down. This will prevent confusion between parties that can result in lengthy court disputes.
Detail the Granted Powers
A principal’s powers that they’re granting to the agent must be clearly detailed so that there is nothing vague, which can cause uncertainty. You want the agent to know exactly what they’re authorized to do on your behalf.
Specify the Duration
You should include a specific duration for the POA, or state if it will remain in effect until it’s revoked. You’ll also have to decide if the POA will be effective as soon as it’s signed and filed, or if it will be triggered by a specific condition, such as incapacitation.
Durability Must Be Included
Some people don’t realize that a POA can be terminated if the principal is incapacitated, so they have to include a note of durability. This will ensure that the agent maintains their authority to continue to assist the principal.
Notarization is Required
It’s common in most states for POAs to require notarization to ensure they’re legally valid. Even if this isn’t required in your state, it’s advisable to get the POA signed in a notary’s presence because it makes it more authentic.
Filing the POA
In some states, the POA must be filed with a government office or court, so check what the rules are in your location.
Review it Regularly
You should review your POA every now and then so that it still reflects your wishes. If there are significant changes in your life, such as regarding your financial situation or health, this prompts a POA review.
How Can You Prevent POA Abuse?
POA abuse is a common occurrence that can cause you legal or financial problems. It can take various forms, such as being coerced to grant the agent powers you don’t want to, or an agent conducting activities that aren’t authorized by you.
You can protect yourself against POA abuse by doing the following:
- Telling loved ones about your POA and wishes so that they can be aware of any agent wrongdoing.
- Appointing an agent you trust and know has your best interests at heart.
- Reviewing your POA regularly so that it accommodates your wishes, such as if you decide to revoke your POA and choose a different agent.
How Does a Lawyer Help with Power of Attorney Drafting?
You should hire a lawyer to draft your power of attorney because they will ensure your POA is legally valid and enforceable. Here’s how they can assist you:
- They’ll keep the POA aligned with all state laws and other legal requirements.
- They’ll help you choose the best type of powers of attorney depending on your situation and requirements.
- They’ll define what powers and activities the agent is authorized to manage.
- They’ll draft the POA so that it has clear, specific language to prevent misuse or disputes.
- They’ll help you select the appropriate agents.
- They’ll ensure that the POA is signed, witnessed, and/or notarized if this is legally required in your state.
- They’ll customize the POA for various situations, such as healthcare or real estate.
- They’ll regularly review or update your POA should this be required, such as if the laws or your life situation changes.
- They’ll check that your POA is consistent with other estate-planning documents.
Where Can You Hire a Lawyer to Draft a Power of Attorney
If you need to hire a lawyer to draft a power of attorney for you, you should use an online legal platform to connect with the right lawyer. On ContractsCounsel, one of the largest online legal marketplaces, you’ll have access to a curated network of vetted lawyers who can help you draft your POA.
To request a lawyer on the platform to draft your POA, all you have to do is follow these easy steps:
1. Visit the ContractsCounsel marketplace, where you can post your project (or request) for free. Include details, such as why you need a POA drafted, so you’re directed to the most appropriate lawyers.
2. Wait for lawyer bids. You’ll receive multiple bids from lawyers directly on the platform.
3. Review the lawyers' profiles based on data provided by the platform, such as their location, client ratings, years of experience, and field of expertise.
4. Hire a lawyer you think is best suited to your requirements to draft your independent contractor agreement so it’s legal and transparent.
