Powers of Attorney

Powers of Attorney are extremely important documents for the proper care of yourself, in the case of your own incapacity. They come into effect during your lifetime, to ensure that your affairs are handled correctly if you cannot make your own decisions.  

Types of Powers of Attorney

• Financial Power of Attorney: The financial power of attorney names a person to act on your behalf regarding your finances. If you are unconscious or permanently disabled, your financial agent has the authority to access your bank account, pay your bills, handle your investments, and take your IRA required minimum distributions. The financial power of attorney can be made to “spring” into effect when you become incapacitated, or it can be made “durable,” meaning it takes effect when signed and remains in effect through any future incapacity. The latter, “durable” financial power of attorney, is generally recommended to avoid any delay in the event of an emergency, and to allow your agent to work on your behalf for convenience, without the requirement that you be incapacitated.
• Medical Power of Attorney: The medical power of attorney names a person to make your medical decisions if you are unable to make those decisions. This person can approve medications, courses of treatment, and surgeries. The person has no authority unless you are already incapacitated, so it is both “springing” in that it only comes into effect when you cannot understand and communicate medical decisions, and it is “durable” through your time of incapacity.

Both documents are fully revocable at any time. Once you pass away, the powers of attorney are nullified, the named agents no longer have any power, and the Executor of your estate has the sole authority to handle your final financial affairs.

Who Needs Powers of Attorney?

Anyone who is over the age of 18 in Texas should have both a Financial Power of Attorney and a Medical Power of Attorney. Young adults who have hit the age of majority have the right to decide who can or cannot make decisions for them if they are incapacitated. And even though you are a parent who has taken care of your child all of his life, you are not automatically given the authority to make medical and financial decisions for your incapacitated adult child. Contact us to have these documents prepared for your high school graduate.

Naming a clear line of authority in the unfortunate event of one’s incapacity makes these documents essential for all adults. Furthermore, if the incapacity is permanent, these documents often help to avoid an expensive, intrusive guardianship proceeding for an incapacitated adult.

Work With Experienced Texas Estate Planning Attorneys

Powers of Attorney confer broad, powerful authority to named agents, but you can tailor that authority, and you can choose your own agents. Let the estate planners at Hammerle Morris explain the ins and outs of the powers of attorney, so you can be assured both your health and finances will be properly taken care of, in case you need help.