To clarify elder law issues, The HaddonfieldPatch, in New Jersey, recently set out the modern rules of powers of attorney.
1. A power of attorney is a good idea for older adults and empowers another person to manage a senior's general affairs.
2. A "durable" power of attorney is a legal document that "endures" and stays in place if the elder person becomes incapacitated.
3. Some states have a "springing" power of attorney. In this case, the document is not effective when signed, but "springs" into action upon the incapacity of the older person who made it.
4. There is a "general" and a "limited" power of attorney. A limited power of attorney can be limited for time and purpose.
5. A general power of attorney is given to an empowered individual with wide-ranging influence over the estate of the senior. The essential impediment to people with powers of attorney, is that they cannot rewrite a will at the behest of another.
6. A spouse does not have de facto power of attorney. Spouses are positioned to handle jointly-owned property, but they are unable to control solely-owned assets of the partner.
7. If a elder individual becomes incapacitated without a power of attorney - someone - usually a family member - will file a lawsuit requesting to be appointed as guardian. This process can be time-consuming and expensive.
The lesson is to make out a power of attorney before it is needed, thereby having a trusted person in place to handle all affairs, financial, legal, burial, etc.