A power of attorney is a legal document that authorizes either one person, known as an “agent,” or several people, known as the “agents,” to act for the person executing the power of attorney, who is known as the “principal.” A properly drafted power of attorney will always allow the principal to choose which powers he or she is giving the agent and, while not required, the power of attorney can contain other limitations, such as the limitation that the power of attorney will only become effective when the principal loses the legal ability to make financial decisions on their own due to the onset of a medical condition, such as Alzheimer’s disease, or due to an accident or injury, such as traumatic brain injury.
Powers of attorney are perhaps the most important tool needed to engage in effective Medicaid planning, especially if the person applying for Medicaid is legally unable to make financial decisions on their own. Without a power of attorney, a person who cannot legally make financial decisions on their own is either left vulnerable to the claims of creditors, as such person may not be able to obtain Medicaid benefits due to excess resources, or a loved one must petition the Supreme Court to have a guardian appointed to make financial decision for the legally incapacitated person.
If you or a loved one is in need of a power of attorney, contact our office for a free consultation.
