Powers of Attorney Lawyer in Dunkirk, Maryland

A Power of Attorney (POA) is a powerful legal document that grants someone the authority to act on another person’s behalf. When you create a POA, you choose an individual or institution, called the "agent" or "attorney-in-fact," to handle specific legal, financial, or healthcare decisions on your behalf. 

This legal tool can be vital in both personal and business matters, making it an important part of many estate planning strategies. If you live in Maryland and are considering a POA, it’s essential to understand how this document works and the various types available to meet your needs.

At the Law Offices Of Julie A Schejbal, CHTD, we strive to give legal counsel to clients in Dunkirk, Maryland. We have the knowledge, experience, and determination to provide you with a better understanding of the process, the role of a Power of Attorney, and how it plays a part in estate planning. 

What Is a Power of Attorney?

A Power of Attorney allows one person (the "principal") to grant another person (the "agent" or "attorney-in-fact") the authority to act in specified ways on their behalf. These powers can range from general powers, such as managing financial affairs, to limited powers, like selling a specific asset or making medical decisions if the principal is unable to do so.

There are several types of POAs, and the type you select will depend on your specific needs. 

Different Types of Powers of Attorney in Maryland

Understanding the differences between these types is crucial to creating an estate planning strategy that addresses your specific needs.

• General power of attorney: A general POA grants broad powers to the agent, allowing them to make decisions regarding financial and legal matters. This may include managing bank accounts, paying bills, or handling investments. This type of POA is often used for individuals who want someone to manage their financial affairs while they’re temporarily unavailable, such as when traveling abroad.

• Durable power of attorney: A durable POA is a more common tool in estate planning, particularly for those concerned with the possibility of incapacitation due to illness or injury. Unlike a general POA, a durable POA remains in effect even if the principal becomes incapacitated, meaning the agent can continue to manage affairs on the principal’s behalf without interruption. It’s often used in advance of potential health issues to make sure there’s a trusted person ready to step in when needed.

• Limited power of attorney: A limited POA is one of the more specific types of documents, as it restricts the agent's authority to specific actions or for a particular time frame. For example, a limited POA might be used to allow someone to sign documents for the sale of property or to manage business operations while the principal is away. This is a good option if you want to give someone authority for only one specific purpose.

• Medical power of attorney (healthcare proxy): This type of POA gives the agent the authority to make healthcare decisions for the principal if they become incapacitated or unable to express their wishes. In Maryland, a medical POA is often referred to as a healthcare proxy. It’s a crucial part of estate planning, as it makes sure someone will be available to make medical decisions in line with your preferences.

• Springing power of attorney: A springing POA is a conditional document, meaning it only becomes effective upon the occurrence of a specific event, such as the principal’s incapacitation. This type of POA is less commonly used, but it may be ideal for individuals who want to retain control over their affairs until a certain point in time.

Each type of POA serves a different purpose, and the authority granted can be tailored to suit your particular needs. Creating a POA is often an essential part of estate planning for individuals seeking to manage their affairs during times of illness, disability, or aging.

Why Is a Power of Attorney Important for Estate Planning?

In Maryland, as in many states, estate planning involves more than just preparing a will or trust. It includes thinking ahead about how you want to be cared for, both financially and medically, if you’re unable to make decisions for yourself. 

Without a properly executed POA, a court may need to appoint a guardian or conservator to handle your affairs if you become incapacitated. This process can be time-consuming and costly. Having a POA in place allows you to choose the person who will manage your affairs, checking that your wishes are carried out without the need for court intervention.

A POA plays an important role in this process, as it makes sure that someone you trust can manage your financial or healthcare matters in case of an emergency. Creating a POA requires taking several factors into account and executing them accurately.

What We Do in Drafting Powers of Attorney

When creating a POA, working with an attorney familiar with estate planning laws in Maryland is highly recommended. The process may seem straightforward, but a well-crafted POA requires attention to detail to check that the document is legally valid and serves the principal's best interests. 

At the Law Offices Of Julie A Schejbal, CHTD, our experienced attorney can help you with the following aspects of this process:

• Select the right type of POA: Depending on your specific needs and concerns, an attorney can help you decide whether a durable, limited, or medical POA is the best fit for your situation.

• Draft the document properly: Maryland has specific requirements for how POAs must be written and executed. An attorney will make sure that your POA complies with these rules, reducing the risk of complications in the future.

• Clarify the powers granted: The document should clearly define the scope of the agent’s authority to avoid ambiguity. Your attorney can help you outline the exact powers you wish to grant and any limitations or conditions you want to place on them.

• Address contingency plans: In case the chosen agent is unable or unwilling to serve, an attorney can help you designate alternative agents or establish backup plans.

The importance of having an attorney review or draft a POA can’t be overstated. A small error or omission can cause significant issues down the road, especially in critical situations like medical emergencies or financial decisions.

Key Considerations When Creating a Power of Attorney

When you’re deciding on a Power of Attorney, there are several factors we encourage you to consider to make sure the document meets your needs:

• Choosing the right agent: The person you appoint as your agent should be someone you trust completely, as they’ll have significant control over your affairs. In many cases, individuals choose spouses, adult children, or close friends. Be sure to consider the responsibilities involved and choose someone capable of managing your affairs wisely.

• Durability: A durable POA is often the best choice for those concerned about future incapacity. If you want the agent’s powers to continue even if you become incapacitated, make sure the POA is explicitly designated as durable.

• Scope of authority: It’s important to consider how broad or narrow the agent’s authority should be. Do you want the agent to have the authority to manage all of your financial and healthcare decisions, or are you looking for something more specific, such as the authority to sell a particular asset or make medical decisions only under certain conditions?

• Revocation: If you later change your mind about the agent you’ve appointed or no longer wish for a POA to be in effect, you can revoke it. Maryland law allows you to revoke a POA at any time, as long as you have the mental capacity to do so.

• Witnesses and notarization: Maryland law requires that POAs be signed by the principal in the presence of a notary public. Some types of POAs may also require a witness. Your attorney can help see that these formalities are properly handled.

A Power of Attorney is an important part of estate planning that allows you to designate someone you trust to manage your affairs in case you’re unable to do so. Whether you need help with financial matters, healthcare decisions, or both, working with an attorney to create a POA makes sure that your wishes will be carried out when the time comes.