The following is a transcript of "The Legal Lad's Quick and Dirty Tips for a More Lawful Life," a podcast from QuickAndDirtyTips.com. The audio program is available via RSS feed here and at TheStreet.com's podcast home page.
Hello, and welcome to
Legal Lad's Quick and Dirty Tips for a More Lawful Life.
But first, a disclaimer: Although I am an attorney, the legal information in this podcast is not intended to be a substitute for seeking personalized legal advice from an attorney licensed to practice in your jurisdiction. Further, I do not intend to create an attorney-client relationship with any listener.
Today's topic is the power of attorney. Listeners have written in with several questions regarding what power of attorney means, to whom you can give power of attorney, and how power of attorney and living wills intersect. Today I will discuss the basics of power of attorney, and tackle living wills next week.
Background
A power of attorney is simply a document giving one or more persons the power to act on your behalf. You, as the person who signs the power of attorney, are called the principal. The power of attorney gives legal authority to another person, called an agent or attorney-in-fact, to make property, financial and other legal decisions on your behalf.
The agent does not have to be an attorney at law; your agent can be any competent adult. Your agent generally owes you a duty to act solely for your benefit and avoid self-dealing.
In many states, a power of attorney can be oral, while other states require a power of attorney to be in writing. Some states, such as New York, even require that a power of attorney be signed before a notary public.
For those states that allow oral power of attorney, that power is typically limited by the equal dignity rule. That rule is a principle of law that requires an authorization for someone performing certain acts for another person to have been established with the same formality as required for the act the representative is going to perform. This means, for example, that if you authorize someone to sell your house, and the law requires a contract for the sale of real property to be in writing, then the authorization for the other person to sign the sales contract and deed must be in writing, too.
Durable Power of Attorney
There are several kinds of power of attorney. The broadest is the durable power of attorney, which enables your agent to act for you until you die, even if you are rendered mentally incompetent or physically unable to make decisions.
A durable power of attorney typically allows your agent to make any legal decision for you. That power exists once you and your agent execute the agreement. A durable power of attorney remains in effect until you revoke it or until you die.
Michael Flynn
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