Halloween Is Actually Scary For ParentsOctober 10, 2020
Are CBD Products Legal in Kentucky?December 10, 2020
What is a Durable Power of Attorney?
A durable power of attorney is one of the most important planning documents an individual has in place in the event they are unable to care for themselves.
A power of attorney serves the purpose of allowing someone else to act on your behalf when you cannot do it for yourself. A durable power of attorney could prevent you from having to be declared incompetent in court if something happens where you can’t act for yourself.
It is a simple document that can save you time, money, and embarrassment, and accomplish everything that you need to continue to function as a private citizen.
Two Witnesses Not Required
The 2018 changes made it a requirement that a power of attorney have two disinterested witnesses to be valid. The 2020 change to the laws related to powers of attorney removes this requirement.
It is likely that the best practice will continue to use two disinterested witnesses. However, this change makes executing a power of attorney in emergency or urgent situations significantly easier.
Statutory Powers and Statutory Form
The creation of statutory powers means those powers are immediately in effect by executing a power of attorney (POA). For example, the power to deal with financial institutions. Other powers must be specifically identified/delineated.
Having a clearly recognizable statutory form will make it easier for unrepresented parties to acquire a POA, will make POAs more uniform, more recognizable to third parties, and more likely to be accepted by those parties.
The Power to Gift
The changes in 2018 left it unclear whether the power to gift was automatically created by a power of attorney or if it must be specifically authorized or excluded. The most recent change specifically states that an individual must expressly authorize the power to gift.
It also creates limits and details about certain gifts to specific persons who are serving as agents that must be expressly authorized.
What Do I Need To Know About a Power of Attorney?
There are several different types of powers of attorney all of which work differently and serve different needs. If you have questions about what type of powers of attorney you may need, contact us. Estate planning can be complicated and change in ways that affect how your documents work. It is important to speak with a lawyer, experienced in estate planning, who can explain the options and help you create a plan that best suits your needs.