Monday, April 29, 2013

The Positives and Negatives Of A Power Of Attorney

Having a power of attorney in place can make life easier in many circumstances. Of course there are the positives and negatives to having an attorney in fact. Considering both the positives and negatives of having an attorney in place, can make the decision a lot easier in the end. As well as considering who to choose for the attorney as well. This is just as important of a decision and making sure that the person chosen will follow through with the principles wishes and desires is crucial, as well as ensuring that there are fewer problems and complications later on when the attorney becomes effective.
The Advantages to having an attorney in place are:
  • The legal document is inexpensive and easy to draw up. Establishing a power of attorney is not expensive and can be done very easily whenever necessary.
  • The principle is than able to have some control over who will be making decisions for them in the event that they become incapacitated. They can have the document drawn up to be very specific with exactly what the powers are and are not. As well as making sure that their every wish is handled to their liking too.
  • The powers that are granted can be general or again very specific. It can also state when the power becomes effective too or whether it becomes effective when incapacitated. The document can have every detail added to it and cover what can and can not be handled by the agent.
  • The document can also ask that the agent be bonded or that they have to give an account of their actions periodically to the courts. The attorney in fact can be required to show and keep track of all transactions and report back to the courts as often as monthly, bi-yearly or any other way that the principle requires to account for any and all actions they have performed.
The Disadvantages of having an attorney in place are:
  • A principle can be questioned later on their own competence when they completed the power of attorney form. They may need to show competency later on that at the time they were able to complete the form.
  • There are times that some financial institutions require that the form be completed on special forms and in a specific way to be valid with that institution.
  • Occasionally some institutions will not recognize a power form after it has already been in effect for six months to a year. Occasionally, the form does have to be updated with these companies to remain valid.
  • When the powers that have been granted to the agent are to general, abuse can occur.
  • An agent can turn out not to be as trustworthy as once thought.

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