Helping Clients Understand Their Options For Power Of Attorney

As you plan for the future, you want to make sure you handle your legal and financial matters responsibly and effectively, especially if you become incapacitated. Having a power of attorney (POA) is crucial for carrying out your financial and medical wishes should you be unable to do so yourself.

My name is Angela Artherton, and as the sole lawyer at Artherton Law, I can assist you in gathering and completing all the necessary documentation to appoint someone as your power of attorney. I can also help you choose the right person to oversee your medical and financial decisions, ensuring they have the organization, skills and integrity necessary to do the job.

How A POA Works

A POA is a legal tool that can designate someone to manage your financial responsibilities and medical needs if you become unable to do so yourself. A POA can also be safer and more flexible than simply adding someone to a bank account. That’s because it can help you maintain agency over your wishes while a trusted fiduciary carries them out for you. After you pass, your POA is ultimately terminated.

The Different Types Of Powers Of Attorney

These are a few options that are available to you:

• Durable POA: Remains in effect even if you become physically or mentally incapacitated

• Non-durable POA: Does not remain effective if you become incapacitated

• Immediate POA: Takes effect upon signing the document

• Springing POA: Only becomes active upon a specific event, such as a physician’s certification of incapacity

I can work with you directly to determine which type of power of attorney fits your unique needs and situation.

The Role And Limitations Of An Agent

Your listed agent in your POA document has significant responsibilities. Those responsibilities can include:

• Managing banking activities
• Paying bills
• Filing taxes
• Handling investments
• Managing real estate or business interests (if they have explicit authorization)
• Making medical decisions

While agents have substantial duties, their role is bound by a fiduciary obligation to act in your best interests, maintain accurate records and avoid conflicts of interest.

POA Vs. Adding Someone To An Account

It’s essential to understand why a POA is a more prudent choice for finances than adding someone as a joint account holder. Adding a joint owner can expose your assets to the agent’s personal financial matters. It can also disrupt your estate plan and unintentionally gift assets. A power of attorney, on the other hand, retains your ownership and provides legal safeguards.

Do Banks Honor POAs?

Yes, most banks will honor a POA. However, they may have specific requirements for them. I can help prepare POAs that comply with your bank’s requirements to allow agents access to your finances.

Choosing And Supervising Your Agent

When choosing an agent to be your power of attorney, it’s crucial to select someone you can trust. You may wish to appoint co-agents or a monitor, which can limit gifting powers, and require periodic accounting. While having multiple agents can keep matters transparent and hold people accountable, it can also make it difficult for agents to make decisions and take actions, as they can have conflicting ideas about what should be done. You can also set specific triggers for your POA and when you name successor agents. You may also wish to include HIPAA language for springing powers related to health decisions.

Special Considerations For Real Estate And Small Businesses

If you own real estate or a small business, you should make sure your POA document outlines specific expectations and directions for managing these assets. An agent can sell your property and handle the transaction if your POA grants them specific access. This is especially important for farmers and small business owners, who require agents with particular knowledge and experience to manage their operations effectively.

Creating, Storing And Updating Your POA

Creating a POA involves careful drafting to ensure it meets your specific needs and complies with state laws. It’s essential to make regular updates to these documents, which can be every three to five years or whenever you experience a significant life change. You will want to keep the original document accessible and notify relevant institutions of its existence.

Can POAs Help Avoid Probate?

A power of attorney document alone cannot help you avoid probate, as the document addresses lifetime incapacity rather than the distribution of your assets after death.

Frequently Asked Questions About Power Of Attorney

Clients in Cassville, Missouri, and nearby Arkansas communities often have important questions when creating or using a power of attorney. The following answers provide practical guidance to help you understand how these documents work and how to use them effectively.

Who can be appointed as a power of attorney in Missouri?

In Missouri, you may appoint a trusted adult to act as your agent under a power of attorney. They should be dependable, capable and willing to handle financial or medical responsibilities with care.

Common choices include:

• A spouse, adult child or other close family member
• A trusted friend with sound judgment
• A qualified professional in more complex situations

The person you select must act in your best interests and follow the authority outlined in your document. 

Can a power of attorney be used for both financial and medical decisions?

A power of attorney can address different types of decisions, but these responsibilities are often separated into distinct documents. Most individuals use:

• A financial power of attorney for banking, property and business matters
• A health care power of attorney for medical and treatment decisions

Separating these roles provides clarity and allows you to appoint different agents if needed. This structure can make it easier to manage responsibilities based on each agent’s strengths.

How do I revoke or change a power of attorney in Missouri?

You may revoke or update your power of attorney at any time, provided you still have the legal capacity to do so. The process generally includes:

• Creating a written revocation or updated document
• Notifying your existing agent of the change
• Informing banks, health care providers and other relevant institutions

Taking these steps helps prevent outdated documents from being used and protects your interests moving forward.

Can a power of attorney be challenged or disputed in court?

A power of attorney may be challenged if concerns arise about its validity or the agent’s conduct. Courts will review these matters carefully, especially when allegations involve misconduct.

Common reasons for disputes include:

• Claims of fraud or undue influence
• Questions about capacity at the time of signing
• Concerns about misuse of authority

If a dispute occurs, the court will examine the circumstances and determine whether the document or the agent’s actions remain valid.

Do banks honor powers of attorney?

Most financial institutions accept properly drafted powers of attorney, though they may require the document to meet specific standards or be recently executed. Having a properly prepared document can help reduce delays and allow your agent to act when needed.

Schedule A Consultation To Learn How I Can Help

If you are considering including a power of attorney document in your estate plan, I am here to assist you. If you have any questions or concerns that you would like addressed, I am happy to discuss them with you during an initial consultation. Schedule one by calling 417-419-9518 or completing my contact form. I look forward to speaking with you.

Disclaimer: Laws vary by state, and this information does not constitute legal advice. Please consult with a qualified attorney for advice specific to your situation.