Why You Need a General Power of Attorney

Making sure someone you trust can manage your financial and legal affairs if you are unable to do so is another aspect of estate planning, which goes beyond wills and trusts. A General Power of Attorney (GPOA) can be useful in this situation. It's a straightforward but crucial document that guarantees your affairs are handled in accordance with your desires in the event that you are unable to do so for yourself.

What is a General Power of Attorney?
It is a legal document that grants someone else the ability to act on your behalf, also referred to as your agent or attorney-in-fact. Managing your financial accounts, legal and personal matters fall under this jurisdiction. General Powers of Attorney are only valid while you are alive and mentally capable of making your own decisions.

Why is a General Power of Attorney Important?
Because life is unpredictable, you may experience an illness, disability, or other situation that renders you temporarily or permanently unable to handle your affairs. Without the need for court action, a GPOA guarantees that someone you trust can take over and manage these duties.

In the absence of a GPOA, your loved ones could have to endure a drawn-out legal procedure to obtain the right to act on your behalf. Your agent can make choices that are best for you, making sure that financial matters are managed, assets are safeguarded, and obligations are paid. Family members experience less stress since it makes it clear who is in charge of handling your affairs and prevents misunderstandings.

How to Create a General Power of Attorney:
Setting up a General Power of Attorney is straightforward but requires careful thought:
1. Choose Your Agent Wisely: Pick someone you trust completely, as they will have significant authority over your financial matters.
2. Define the Scope: Decide what powers you want to give your agent and whether there are any limitations.
3. Consult an Attorney: A lawyer can help you draft the document to ensure it’s legally valid and reflects your wishes.
4. Sign and Notarize: In most states, a GPOA must be signed in the presence of a notary to be legally binding.