Rockland County Power of Attorney Lawyer

There are few estate planning documents that are as useful or as versatile as a power of attorney. The truth is, nobody knows what tomorrow will bring, and if an unexpected illness, injury, or other event leaves you unable to manage your own financial affairs, having a properly executed power of attorney in place can make a world of difference. If you’re interested in learning more about how a power of attorney works or would like assistance creating one, please don’t hesitate to contact a knowledgeable and skilled Rockland County estate lawyer from the Law Office of Peter A. Hurwitz, PLLC.

How Does a Power of Attorney Work?

Simply put, a power of attorney is a legal document that allows one person to act on behalf of another person in financial and legal matters. The person granting this authority is known as the principal, while the individual receiving that authority is referred to as the agent.

Many people mistakenly believe that naming an agent somehow means they lose control over their own finances. Fortunately, this generally is not true. In most situations, the principal continues to retain the authority to manage his or her own affairs, make financial decisions, and even revoke or replace the power of attorney, provided he or she still has the legal capacity to do so.

Depending on how the document is drafted, an agent may be authorized to perform a wide variety of tasks. Some of the most common responsibilities an agent may handle are as follows:

• Paying bills.
• Managing bank accounts.
• Handling investment accounts.
• Buying or selling real estate.
• Filing tax returns.
• Conducting other financial transactions on the principal’s behalf.

That being said, an agent owes the principal what is known as a fiduciary duty. This means the agent must always act in the principal’s best interests, follow the instructions outlined in the power of attorney, avoid conflicts of interest whenever possible, keep accurate records, and never use the principal’s assets for personal gain unless the document specifically authorizes certain actions.

Because of this, choosing your agent is perhaps one of the most important decisions you will make throughout the estate planning process. Most people appoint a spouse, adult child, close family member, or trusted friend who they know will handle these responsibilities honestly if the need ever arises.

Are There Different Types of Powers of Attorney in NY?

There are several different types of powers of attorney, each of which is designed to accomplish a different purpose depending on your individual circumstances. Some of the most common types of powers of attorney used are as follows:

• General Power of Attorney: Gives an agent broad authority to manage many different financial and legal matters on behalf of the principal.
• Limited Power of Attorney: Grants authority only for a specific purpose or transaction, such as completing a real estate closing or managing a particular financial account.
• Durable Power of Attorney: Continues to remain effective even if the principal later becomes incapacitated. Generally speaking, this is the type of power of attorney that many people include as part of a comprehensive estate plan because it allows someone they trust to continue managing important financial matters if they become unable to do so themselves.
• Non-Durable Power of Attorney: Terminates if the principal becomes incapacitated. These documents are often used for temporary situations or transactions that are expected to conclude within a relatively short period of time.
• Springing Power of Attorney: Becomes effective only after a specific event occurs. While some states still recognize these documents, New York law has changed over the years, and many estate plans now utilize immediately effective powers of attorney instead. An experienced estate planning attorney can explain which option best fits your circumstances under current New York law.

What Makes a Power of Attorney Valid & Enforceable in NYS?

Creating a power of attorney involves several steps in order for the document to be legally recognized and accepted by banks, financial institutions, and other third parties. The criteria for a valid and enforceable power of attorney in New York State are as follows:

• It must be signed by the principal.
• It must be dated.
• It must be acknowledged before a notary public.
• It must clearly identify both the principal and the agent.
• It must clearly describe the authority being granted.
• It must be executed while the principal has the legal capacity to understand both the document itself and the legal consequences of signing it.

Contact a Power of Attorney Lawyer in Rockland County, NT

For years, we at the Law Office of Peter A. Hurwitz, PLLC have provided comprehensive estate planning services to individuals in the Hudson Valley. If you need a trusted estate lawyer to help you draft a power of attorney, please don’t hesitate to contact us today. We’re here to help you and your family attain the peace of mind you deserve.