Reviewing a power of attorney.
The power of attorney act, also known as the uniform power of attorney act, is legislation designed to establish common procedures to establish and standards to utilize a power of attorney. Although not in force in all states in the U.S., a growing number enacted the power of attorney act.
History
Historically a power of attorney was considered non-durable unless language specifically referenced it as a durable power of attorney. A non-durable power of attorney terminates upon a declaration of incompetence of the the grantor (person who executed the power of attorney). Under the uniform power of attorney act, this position reversed. A power of attorney under the act is deemed durable--continues in force despite subsequent incompetence--unless the instrument specifically is defined as non-durable.
Function
The function of the power of attorney act is to provide procedures and standards through which a person designates an agent to handle her financial affairs. A power of attorney functions to handle all of your financial affairs (general power of attorney) or only those areas specifically delineated in the instrument (limited power of attorney).
Termination
You terminate an instrument created under the provisions of the power of attorney either by including an ending date in the document. You terminate the power of attorney any other time desired. The power of attorney automatically ends upon your death.
Execution
The power of attorney act does not require execution of the instrument in front of a power of attorney. Signature in front of a notary public is recommended. The act authorizes another person to sign the power of attorney on behalf of the principle as long as the execution occurs in the "conscious presence" of the principal.
Warning
Executing a power of attorney pursuant to the uniform power of attorney act bestows extensive authority on the agent. (The agent is the person appointed in the power of attorney to act on your behalf.) You must not only make sure you appoint a trustworthy agent but you must review and monitor her efforts on your behalf to ensure she acts in your best interests.
