The power of attorney does not in fact have anything to do with hiring an attorney, and with exception of some of the formalities (like signing the POA document itself) attorneys do not have a lot of involvement in the process.

In a nutshell, the power of attorney document is a legal document that any two parties may sign where one of the signers (known as the “grantor”) authorizes another party (sometimes more than one person or entity known as the “donor” or “agent” ) to make formal decisions on their behalf. These decisions incorporate things like paying bills, starting or stopping services in the grantor’s name and can also incorporate medical decisions on behalf of the grantor.

All decisions and actions made by the agent on behalf of the grantor are considered legal actions as if they were taken by the grantor themselves . It goes without saying that the power of attorney document is and incredibly important and powerful document and should be entered into with great care and thought.

Amongst the many uses for a POA agreement is in the case that the grantor becomes ill or otherwise incapacitated and needs to defer decisions to another trusted party that will handle their affairs when they are unable. This is particularly important, and most often used in the case of the elderly.

An aging parent or grandparent may choose to bestow his or her power of attorney privileges to one of their children or grandchildren in order to make effective medical decisions (weather or not to have doctors perform a particular procedure or not) on their behalf. This is closely related to but not defined as a “living wills”. In terms of medical decisions the POA and the assigned agent are referred to as the “healthcare proxy” of the grantor.

While there are three main types of the power of attorney document under which subtypes may fall. All types require that the grantor of legal privileges be of the recognized legal age of 18 and be of sound mind and capacity at the time of the signing or granting of the privilege .

This is also important to note that a minor cannot grant power of attorney privilege to anyone due to the reason that their parents essentially already have all legal decision making capabilities for their children who are minors.

All forms of power of attorney become void and with the death of the grantor.

There are many sources on the Internet and at libraries to help you find and prepare a power of attorney document.

It is common that people may not feel comfortable bestowing wide range of capabilities to their chosen agent immediately after creating a power of attorney document that is why they choose this POA. This POA document doesn’t allow your chosen representative to make any health care or medical decisions for you. However, a springing POA can become an issue if there is disagreement between family members or doctors regarding the disabled state of the grantor.

Note that in order for a springing power of attorney document to come into effect there must be a formal proclamation of the disability of the document’s grantor. In your POA you may stipulate that two physicians must agree and put their diagnosis in writing that you the document’s grantor are disabled or otherwise incompetent to manage your affairs.

Only after these legal affidavits are signed and summarily attached to the POA can your agent begin to act as your attorney-in-fact.

Until the incapacity of the grantor has been established, an institution, such as a bank or the IRS, may refuse to honor the POA document.

A springing power of attorney gives the person or group whom you designate as your agent strong and effective powers to handle your property, finances and estate. Some of the topics considered in a springing POA are: real and personal property transactions, stocks and bond and other market transactions , social security and other government benefits , general banking, estate management, legal litigation, retirement plan transactions , personal and family maintenance and tax matters.

These capabilities of the agent are more fully explained in the uniform statutory form power of attorney act.

The springing POA document must be signed and acknowledged before a notary public. A durable power of attorney that could affect a tangible property must be recorded before a notary public but not necessarily a lawyer.

Some United States counties might require the grantor to register this durable power of attorney at the local office of commissioner of deeds, or at the county clerk’s office.

If there are details concerning this form that are not clear to you, you should always ask a lawyer to explain it in more detail to you.

Debts and money after death

Your personal debt is never going to pass over to your family members on the event of your death. So, what is going to happen to your debts after you die? The state laws on this vary from one to another state.

In most of the states, if none of your family member or members co-signed a loan (any type) with you, even if it’s a mortgage or a car loan, then nobody is supposed to make the payments on that after your death. However, in case of a mortgage or car loan, the lender can foreclose your home or car if you have not been able to pay off the same. So, if you had passed over your property or your car to your children and family and if they would like to retain the property or car, they will have to pay off the debts.

In case, there was a co-signer on such debts, the co-signer will be held liable for the payments on the event of your death. Actually, when another person co-signs on an account (any type), both you and the co-signer are supposed to be equally responsible for the debt payments.

Actually, after the death of the debtor, the value of the estate and assets is calculated. After that, the executor analyzes the amount of debt owed by the debtor. Thus, the value of the estate is then calculated in which the value of all of your assets is included. All of these are used to pay off the creditors and the lenders. If the money is enough to clear off all of your debts, then well and good. However, if the value of your property is not enough to clear off all of your debts, then the creditors and the lenders will have to be content only with what they get out of your property.

It is the executor who gives all of the details to the court and the court is appointed so as to sell all of your property. Thus, the money in that have been accumulated by you, your estate and so on are used to settle your debts.

However, yet again, another thing that can change the whole scenario is the rule followed in the community property states. In a community property state, all the money can be divided into two equal halves in between the spouses. Similarly, the debt incurred by one is considered to be a debt owed by another. Thus, if you leave behind loads of debt, your spouse will be held liable to pay off debts. But these debts will have to be those which were incurred during the years of your marriage.