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A Power of Attorney is a document by which you appoint and authorize a particular person to act as your Agent (or "Attorney-in-Fact") handle your affairs while you are unavailable or unable to do so. This could be due to overseas military or work assignments, extended travel, or a time when you are physically or mentally unable to handle your affairs.
While your Agent does not need to be an attorney, it is important to select someone you trust. You need to choose someone who will not abuse the powers you grant to them, and who will look out for your best interest. In general, an Agent is only held responsible for misconduct that is intentional, not for unknowingly doing something wrong. Therefore it is important your Agent has maturity and sound judgment.
A Durable Power of Attorney contains special durability provisions. If you become mentally incompetent while you have a Power of Attorney document already in effect, a durability provision will allow the document to stay in effect. You can also sign a Durable Power of Attorney to prepare for the possibility that you may become mentally incompetent due to illness or an accident. In this case, you would specifiy that the Power of Attorney would not go into effect unless a doctor certifies that you are mentally incapacitated.
A Power of Attorney must be signed by the person granting the authority (known as the "Principal"). The Principal must be mentally competent at the time of the signing in order to make the document legally binding. If there is any question about the Principal's mental competence, a physician may be asked to certify in writing that the person understands the document and the consequences of signing the document.
The signature on the Power of Attorney should be notarized. Notarization makes it more difficult for someone to challenge the validity of the signature. It also allows the document to be "recorded" for use with real estate transactions.
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© Erwin, Ott, Clark, Orso & Campbell 2003