All of us are likely to create or act on a Power of Attorney (POA) at various times in our lives. Let’s talk about what Powers of Attorney do for us, and why they are important.

First, a Power of Attorney is a document that is created giving another person or persons legal authority to act on your behalf. When you create a POA, you are called the “Grantor” or “Principal,” and you control all of its terms. You can create a POA to fit any particular situation you wish. You may change the terms or cancel the POA at any time, as long as you remain of sound mind.

The person to whom you give authority is called your “Agent” or “Attorney-in-Fact.” The power that you give can be very wide-ranging, covering all of your financial, personal and health-related matters; or it can be very limited, such as the power to act only on a specific matter at a specific time and place.

Regardless of the type of POA, your attorney-in-fact must exercise a high standard of care in managing the matters you entrust to him or her. The agent literally stands in your shoes, and is legally liable for any actions taken. Good faith, trust, confidence and candor are required of the agent at all times. When giving someone the legal power to act for you, it is essential to choose someone you know well and trust completely.

Some of the common types of POAs are:

* General Durable POA: This generally gives broad authority to your agent to manage your day-to-day affairs, such as your income, real property and other financial assets, paying your bills, etc. It remains in effect even if or when you become incompetent. A General Durable POA is a very important part of your estate planning documents because it allows you to plan for a trusted person to continue, or to take over, management of your affairs when you become unable to do so yourself.

* Medical Care POA: This gives your agent authority to make decisions about your medical care and treatment if you become incapacitated. In California, we have combined the Medical POA with a “Living Will” into one document called an Advance Health Care Directive. Every person should have one of these, in case a sudden accident or illness makes it impossible for you to make critical decisions about your own care.

* Special POA: this limits your agent’s power to a specific matter. For example, you plan to be out of the country when the lease on your property needs to be signed. You write a Special POA authorizing your brother to sign the lease on your behalf.

Here are some real life questions and answers about POAs:

My mother just suffered a stroke and is in a coma. How can I get a Power of Attorney so I can take care of her affairs?

Unfortunately, you can’t get a PO when a person is not competent to create one. You will need to petition the Probate Court to become your mother’s conservator in order to make any legal decisions for her.

My sister is ill, but still competent. She is preparing to give me a Durable Power of Attorney to take over management of her daily affairs. She wants to make some changes to her Will, as well. Does the POA give me authority to amend the Will for her?

Usually it does not and only your sister can amend her Will. However, if the POA gives specific authority to the agent to make changes to your sister’s estate planning documents, you may be able to do so. Since your sister is still competent, I would encourage her to make the changes to her Will personally, through a valid, legal codicil (amendment) to her Will.

I am named attorney-in-fact in my father’s Power of Attorney. He has many debts, and I am afraid if I assume the authority he is giving me that I will become liable for his debts.

If the POA is properly drafted, this should not be an issue, as long as you do not sign any personal guarantees in your own name, and use only his assets to pay for his debts. We often see that someone is put on a joint account or other asset in order to make it easier for one person to manage another’s finances. A POA is a much better way to do this, and avoids exposing the assets of both parties to the debts of one of them.

If I give my daughter my Power of Attorney to handle all my affairs, will that avoid Probate after I die?

By law, all POAs you may have granted while living are no longer valid the moment you die. You may make your daughter executor of your Will, and she can handle your affairs once your Will is probated. Or you can establish a Revocable Living Trust or other type of trust that will likely avoid the Probate Court altogether.

How can I terminate a Power of Attorney?

As long as you remain competent, you may terminate or revoke a POA at any time. You must notify the holder of the power that you are revoking it, and be sure to identify the specific powers you are terminating. It is a good idea to have the person return the original POA to you, and to destroy it and any copies that exist. Make it known to everyone that you have revoked the POA.

This article is part of an ongoing series of articles pertaining to legal issues in the LGBT community. Previous articles can be viewed at www.heritagelegal.com. This information is intended for general information purposes only, and is not intended to provide legal advice. Christopher Heritage is an attorney in Palm Springs, who focuses on LGBT estate planning, domestic partnerships, same-sex marriage, probate, trust administration, and consumer bankruptcy. He welcomes questions and comments, and can be contacted at 760.325.2020, or by email: chris@heritagelegal.com