Power of Attorney

What is Power of Attorney?

Power of Attorney  is a person of your choice that you would like to appoint to manage your affairs, when/if you were to lose mental capacity. Losing mental capacity is often related to either Alzheimer’s Disease or Dementia, however losing capacity can also be caused by a serious accident.

You would need to appoint your Power of Attorney before you lose mental capacity. It is important to consider this as you get older, as if you do not appoint an attorney, it can cause problems with your family and loved ones.

In New York, there are several types of Power of Attorney (POA), each serving different purposes and granting varying levels of authority. The primary types are:

Durable Power of Attorney: This type of POA remains in effect even if the principal (the person who grants the authority) becomes incapacitated or unable to make decisions. It’s often used for long-term planning and ensures that the agent can manage the principal’s affairs without interruption.

Non-Durable Power of Attorney: In contrast to a durable POA, a non-durable POA becomes invalid if the principal becomes incapacitated. This type is often used for specific transactions or for a limited period when the principal cannot manage their own affairs temporarily.

Springing Power of Attorney: This POA becomes effective only under certain conditions, typically when the principal becomes incapacitated. This allows the principal to retain control over their affairs until a specific event triggers the transfer of authority to the agent.

Health Care Power of Attorney: Also known as a Health Care Proxy in New York, this grants the agent the authority to make medical decisions on behalf of the principal if they are unable to do so themselves. This is distinct from a living will, which provides instructions for health care but does not appoint an agent.

Financial Power of Attorney: This grants the agent authority to handle financial matters on behalf of the principal. It can be structured as durable or non-durable and may include a wide range of financial duties, from managing bank accounts to handling investments.

It’s important to note that New York has specific legal requirements for creating a valid POA, including how it must be signed and witnessed. It’s advisable for individuals considering a POA to consult with a legal professional to ensure that the document is properly executed and aligns with their intentions.

The provided document is a comprehensive outline for creating a General Power of Attorney (POA) in New York. Here’s a summary:

Purpose and Scope:

• The POA allows you to designate an Agent with broad powers to manage your property, including selling or disposing of real or personal property.
• It can be structured to remain effective even if you become disabled, incapacitated, or incompetent.
• The specific powers granted are outlined in the New York General Obligations Law, Article 5, Sections 5-1502A through 5-1503.
• This POA does not cover medical or health care decisions.
• Legal advice is recommended if there are any uncertainties.

Execution of the Power of Attorney:

• You (the principal) appoint an Agent and provide details of the powers you are granting.
• Powers include handling real estate, financial transactions, insurance, estate matters, claims, personal affairs, military benefits, retirement benefits, tax matters, among others.
• You must initial specific powers you wish to grant.
• The document includes a clause allowing the POA to remain effective despite your subsequent disability or incompetence, which requires your initialing.