Power of Attorney Guide
Understanding the different types of powers of attorney and how they protect you and your family in Texas.
What Is a Power of Attorney?
A power of attorney (POA) is a legal document that allows you to appoint someone (called an "agent" or "attorney-in-fact") to act on your behalf. The person granting the power is called the "principal." Powers of attorney are essential estate planning tools that ensure your affairs can be managed if you become unable to handle them yourself.
Important
A power of attorney only works while you are alive. It automatically terminates at death, at which point your executor (named in your will) takes over managing your affairs.
Types of Powers of Attorney in Texas
Durable Power of Attorney for Finances
Authorizes your agent to handle financial matters including banking, investments, real estate transactions, tax filings, and bill paying. The "durable" designation means it remains effective even if you become incapacitated.
Common Powers Include:
- • Managing bank accounts and investments
- • Paying bills and managing debts
- • Filing tax returns
- • Buying, selling, or managing real estate
- • Handling insurance matters
- • Managing business interests
Medical Power of Attorney
Designates someone to make healthcare decisions for you if you cannot communicate your wishes. This is separate from a living will, which documents your preferences but does not appoint a decision-maker.
Your Agent Can:
- • Consent to or refuse medical treatment
- • Choose doctors and healthcare facilities
- • Access your medical records
- • Make end-of-life care decisions
- • Authorize organ donation (unless limited)
Limited Power of Attorney
Grants authority for specific purposes or time periods. Common uses include authorizing someone to sign documents at a real estate closing, manage a specific account, or handle a particular transaction when you cannot be present.
Choosing Your Agent
Selecting the right agent is crucial. Your agent will have significant power over your finances or healthcare, so choose someone you trust completely. Consider:
Good Agent Qualities
- • Trustworthy and honest
- • Organized and responsible
- • Willing to serve
- • Available when needed
- • Understands your values and wishes
- • Financially stable (for financial POA)
Warning Signs
- • History of financial problems
- • Lives far away (if availability matters)
- • Conflict of interest
- • Poor communication
- • Doesn't understand your wishes
- • Reluctant to serve
Texas Requirements for Valid Powers of Attorney
To be valid in Texas, a power of attorney must meet certain requirements:
- Written document: Powers of attorney must be in writing.
- Principal signature: The principal must sign or direct someone to sign on their behalf.
- Notarization: Must be notarized (required for durable powers).
- Capacity: The principal must have mental capacity when signing.
- Durable language: Must include specific language to be durable (survive incapacity).
Why You Need Powers of Attorney
Without a valid power of attorney, if you become incapacitated, your family may need to go to court to establish a guardianship—a time-consuming, expensive, and public process. Powers of attorney let you:
- Choose who will make decisions for you
- Avoid court-supervised guardianship
- Ensure bills get paid and finances managed
- Make sure your healthcare wishes are followed
Frequently Asked Questions
What is the difference between durable and non-durable power of attorney?
A durable power of attorney remains effective if you become incapacitated—it 'endures' your incapacity. A non-durable POA automatically ends if you become incapacitated. For estate planning, durable powers are essential since they protect you when you need help most.
Can I have multiple agents under a power of attorney?
Yes, you can name multiple agents to act together (jointly) or separately (severally). You can also name successor agents who take over if your primary agent cannot serve. Consider how decisions will be made if agents disagree.
When does a power of attorney take effect?
Powers of attorney can be 'immediate' (effective upon signing) or 'springing' (effective only upon a triggering event like incapacity). Immediate powers are generally preferred because they're easier to use and determining incapacity can be difficult.
Create Your Power of Attorney Documents
Our attorneys can help you create properly drafted powers of attorney that protect you and give you peace of mind.
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