Please enjoy this article written by Kenneth Vercammen, Esq. explaining what exactly Power of Attorney is and when it is useful.

Power of Attorney Taking Effect Regardless of Disability

Every adult has day-to-day affairs to manage, such as paying the bills. Many people are under the impression that, in the event of catastrophic illness or injury, a spouse or child can automatically act for them. Unfortunately, this is often wrong, even when joint ownership situations exist.

Filing your unfiled income tax returns with the IRS can be a very costly mistake, unless you clear the way first.

You should never file your late tax returns with the IRS. Why? Because you could fall into a trap.

Here is some solid advice.

If you’ve filed all your previous returns and don’t owe any money, and you can full pay any balance shown on this return, then you can file it now without a problem.

A durable power of attorney is a document that is used as a legal way to appoint some one to act on your behalf if you become incapacitated. To get one you can go down to your county’s courthouse and pay a ‘print fee’ for a copy for one. An even easier way to get one though is by going online and finding a durable POA form you can fill out at home on your PC then print out yourself; theirs many sites out there that offer these kind of fillable forms.

A power of attorney form is a legal document that allows you to appoint some one who is willing to act on your behalf in a matter of your choosing. For example, power of attorney forms are used a lot by deployed soldiers who want their wives back home to have access to their bank account.

A power of attorney (POA) agent is often times also called an “attorney-in-fact”. This person is appointed by some one to legally represent them for specific or general tasks or situations. This is done by creating a power of attorney form, it only needs to be notarized (recorded by your county) if it involves real estate.

Modern advancements in medicine have made it possible for us to live longer than ever before. While these advancements have substantially extended our lives, such an extension may not be desirable because it may lower our quality of life and result in a loss of our dignity. Since all competent adults have the right to make their own medical decisions, you may want to tell your doctor now not to take heroic or extraordinary means to prolong your life in the future if you become ill and there is no hope for your eventual recovery. You can do this by preparing a living will.

As an elder law attorney I am frequently faced with adult children who realize that they simply have to take over for an aging parent. Maybe the parent is falling behind on bills or has trouble dealing with the medical establishment. It is always hard for a “child” to become the caretaker of the once-powerful and dominant parent.

You may have heard some of the terms, Last Will and Testament, Living Will, Power of Attorney, but are not exactly sure what they are or whether you need them. From an Estate Planning perspective, these documents are essential to ensure that your assets are distributed properly and your legal interests are protected.

1. California Law

This document discusses California law only. Each state has its own laws for dealing with wills, trusts and powers of attorney.

2. Durable Power of Attorney for Finances

a. Durable powers of attorney for finances allow someone else to handle your finances for you. They come in two basic types:

i. A “springing” durable power of attorney allows your agent to handle your financial affairs (such as paying bills) if you become incapacitated.

(1) If you regain capacity, your agent loses this power – unless and until you become incapacitated again.

It is strongly recommended by the state of Utah’s department of human resources that individuals have prepared documents that carefully set out what their wishes are in case of a terminal illness, or if they are unable to decide their own decisions.

These documents are called advance directives; they consist of a Utah Living Will form and a Utah Power of Attorney for Health Care Form.