Estate Planning

Powers of Attorney

Estate Planning Attorney, Ken Sheppard, Jr. is well versed in helping individuals with establishing their powers of attorney.

Durable Power of Attorney

A Durable Power of Attorney (also known as a Financial Power of Attorney) is an authorization to act on someone else's behalf in legal, business, or financial matters. The person authorizing the other person to act is called the “Principal”. The person authorized to act on behalf of the principal is called the “Attorney-in-fact” or “Agent”.

A Durable Power of Attorney is very broad and provides extensive powers to the attorney-in-fact. Some of the powers you (as the principal) can bestow upon your agent include:

• Handling bank transactions

• Entering safety deposit boxes

• Handling transactions involving U.S. securities

• Buying and selling real and personal property

• Purchasing life insurance

• Exercising stock rights

• Filing tax returns

• Handling matters related to government benefits

• Entering into contracts

• Maintaining and operating certain business interests

• Employing professional assistance

• Making gifts

• Making transfers to revocable ("living") trusts

• Disclaiming interests

A Durable Power of Attorney is usually used by your agent to handle your financial affairs during any period of time when you are unable to do so. For example, when you are traveling out of the state or country or when you are physically or mentally unable to handle your affairs, your durable power of attorney permits your agent to conduct your business for you.

You may also want to limit the powers given to your agent by scope or by duration. A Limited Power of Attorney specifies the powers given to your agent for a certain period of time. For example, you may wish to authorize your agent only to sell a car on your behalf.

Health Care Power of Attorney

A Health Care Power of Attorney is a document that allows you to designate a person (referred to an "agent" or attorney-in-fact”) who will have the authority to make health care decisions on your behalf if you are unconscious, mentally incompetent, or otherwise unable to make such decisions for yourself.

In Ohio, you can also express your wishes regarding whether you wish to receive "life-sustaining procedures" if you become permanently unconscious or terminally ill in your Health Care Power of Attorney document. However, please be aware that your Health Care Power of Attorney is different from your Living Will.

A Health Care Power of Attorney allows you to appoint someone to make health care decisions for you in situations where you are not permanently unconscious or terminally ill. A Living Will allows you to express your wishes concerning life-sustaining procedures.

Both Living Wills and Health Care Powers of Attorney are considered Advanced Health Care Directives because you're giving instructions on what you want to happen in the event that you become unable to make health care decisions in the future. Even if you have executed a Health Care Power of Attorney, you still have the right to give medical directions to physicians and other health care providers as long as you are able to do so. This document becomes useful when you do not have the capacity to give, withdraw or withhold informed consent regarding your health care.

These powers of attorney (Durable Power of Attorney and Health Care Power of Attorney) contain special durability provisions. In the event you become mentally incompetent while you have a power of attorney in effect, the durability provision will allow the powers to stay in effect during your incapacitation.

Conversely, you can also sign a power of attorney that wouldn't go into effect until a doctor certifies that you are mentally incapacitated. This type of power of attorney is called a Springing Power of Attorney.

You don't have to choose an attorney to be your agent, but it is important to select someone you trust. The relative or friend you choose to be your agent will be acting on your behalf regarding your financial or health care issues. You need to choose someone who won't abuse the powers you grant to them, and will look out for your best interests.

In general, an agent is only held responsible for misconduct that's intentional, not for unknowingly doing something wrong. This type of protection is included in powers of attorney to help encourage agents to accept the responsibility of being an agent.

Generally, there is no financial incentive to serve as an agent. Most agents serve without compensation. If you should name a business (i.e. a bank) as your agent, you can expect a reasonable fee to be charged by the business to carry out its fiduciary duties.

If you wish to create or modify your Estate Planning or if you need help navigating through the nuances of Probate, Estate Administration, or Taxation, remember that Attorney Ken Sheppard Jr., and his staff, is here to assist you by ensure that your needs are met along with fulfilling your goals.

Read more about the different Estate Planning services we offer:

Estate Planning & Taxes

Wills

Trusts

At Sheppard Law Offices, Co., L.P.A. we listen, we advocate, and we care about the individuals and families who come to our office. Contact our Columbus (Westerville) or Newark Law Offices to schedule a free one-half (1/2) hour initial consultation. We look forward to serving you.

Contact Sheppard Law Offices and Attorney Kenneth L. Sheppard, Jr. to discuss your particular situation. Call today to schedule your free consultation at 1-877-505-9455.

 

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