Power of Attorney
Power of attorney documentation gives a person—called the principal—the ability to designate another person—known as the agent—to look after their interests. Powers of attorney may become necessary due to medical decline, mental impairment, or just convenience. When the principal cannot make certain decisions, the agent makes those decisions just as the principal would.
The party holding the power of attorney typically becomes recognized as the principal, but the laws vary by state. In the state of Louisiana, a POA has two requirements. First, the principal must make the offer to their agent. And second, the agent must accept the offer. Following this formal agreement, legal documents must be signed in the presence of a notary and witnesses. There are four types of power of attorney that an agent may be granted:
- General Power of Attorney gives the agent the power to manage the principal’s affairs in all aspects as if it were the principal’s actions.
- Durable Power of Attorney designates an agent to act for the principal, usually when the principal becomes incapacitated and medical decisions are required.
- Special Power of Attorney, also known as “Limited” power, grants specific rights to the agent specifically designated by the principal.
- Springing Durable Power of Attorney gives an agent power of attorney rights but only following the incapacitation of the principal.
A family member, spouse, or other trusted individual can be named as your power of attorney. However, this individual must be of legal age and competent. In some circumstances, multiple agents can be designated by one person. Having the conversation of designating a POA is crucial. It’s important to take proper precautions before a life-altering event occurs. Speak with a skilled attorney in Baton Rouge to better understand your power of attorney needs and begin the process of establishing your agency agreement.
