Rules regarding medical and financial POA

     POAs may be financial, medical, or both. Financial POA gives me the right to access a loved one bank account in order to pay bills, make deposits, or withdraw funds. A medical POA also called a health care proxy gives one the ability to carry out wishes on any future medical care. 

     The relationship between agents and principals usually include:

• Best interests– The main duty of the agent is always centered around acting in the best interest of the agent. 
• Non disclosure– The principal or agent do not have to disclose any information about their terms
• Access to principal-Agents usually do not have the right to refuse to let their family see the principal, unless they determine that it may be harmful to the principal’s health.
• The right of revocation-As long as the principal is competent then POA can be revoked. 
• Termination at death– POA ends once the principal dies, then their will takes over. 

    Due to the wide range of powers given to agents, there is a possibility of them abusing their authority. Legal action may be filed against the agent if they are mishandling or abusing the principal or their assets.

Preventing costly legal battles

    If you are drafting a POA for the first time, there are way to avoid certain conflicts before you become incapacitated. There are also some options for you to avoid lengthy court battles. 

An elder law attorney can help you:

• Update your designations– Review this every few years to make sure you have the right choices selected
• Name co-agents-You don’t have to choose just one person to handle your affairs. You can have one person manage financial while the other manages medical. Just make sure it’s clearly written out so there is no tension surrounding the responsibilities of the individuals. 
• Appoint a professional fiduciary– If you have multiple children who have different ideas about where your money should go, consider hiring a professional fiduciary to manage your money. Thai will avoid the need for litigation. 
• Resolve disputes through meditation– Talking through a conflict with family can resolve the problem without involving the courts. Mediators can help family members deal with each other’s issues and help to find a solution.
• Establish guardianship– If litigation cannot be avoided, then an individual may begin guardianship proceedings. This will help ensure that a relative is taken care of.

     The best way to protect your future is to consult your local elder law attorney. They will make sure that you have the best plan setup for your future.