Common mistakes when creating power of attorney

| Jan 9, 2019 | Firm News

There are numerous considerations to make when creating a power of attorney for yourself. One recent development in Texas is the inclusion of “hot powers,” such as giving an agent the ability to create a beneficiary designation and create a trust during the principal’s lifetime. 

You should create a power of attorney well in advance, even if you are still young. You need an attorney’s assistance while developing these documents to help you avoid some of the more common mistakes people make when developing an estate plan. 

Not making the right POA

There are different kinds of POA. You need a medical power of attorney, which gives someone the right to make medical decisions on your behalf, and you need a financial power of attorney, which allows someone to make financial decisions and pay your bills when you are unable to. You also need to consider whether you need a limited or general POA.

Giving up an excessive amount of control

You also need to consider how much power you give someone. First, you need to ensure you give power of attorney to someone you trust. Most people give POA to a close family member. However, you do not want to trust just any family member because this person may need to make important decisions in the future. You need to give POA to someone you basically trust with your life. 

Not updating your POA over the years

You should create a POA when you are still young. Over the years, your life will change, and your POA needs to reflect that. For instance, if you grew up in one state and then moved to Texas, then you need an attorney in Texas to review your estate plan. Different states have different laws, and you need to make sure your POA will be valid in our state. You should notify all relevant parties about any updates you make.