Who would handle your finances if you suddenly couldn’t? A power of attorney (POA) ensures that someone you trust has the legal authority to act on your behalf. Without one, even simple tasks like paying bills or managing accounts can become complicated. A well-prepared POA keeps things running smoothly, whether you need short-term help or long-term planning. Life is unpredictable, but you can take steps now to protect your future. By putting a POA in place, you stay in control of who makes decisions for you when it matters most.
What Is a Power of Attorney?
A power of attorney is a legal document that allows you to grant another person, known as your agent, the authority to handle financial and legal matters on your behalf. This authority can be broad or limited, depending on your needs. Some POAs take effect immediately, while others only become active under specific conditions, such as incapacity. By creating a POA, you ensure that someone you trust is legally authorized to act in your best interest, whether for routine financial transactions or more significant legal matters.
Types of Power of Attorney
Not all powers of attorney work the same way. The type you choose depends on when and how you want your agent to act. Here are the most common options:
- Durable Power of Attorney – This type remains in effect even if you become incapacitated. It ensures your agent can continue handling financial and legal matters without court involvement.
- Springing Power of Attorney – Unlike a durable POA, this one only takes effect when a specific event occurs, such as a doctor’s determination that you are unable to manage your affairs.
- Limited Power of Attorney – This grants authority for a specific purpose or timeframe, such as signing documents while you are out of the country or authorizing someone to close a real estate deal on your behalf.
Each type serves a different purpose. We can help you determine which one best fits your situation.
Choosing an Agent for Your Power of Attorney
Selecting the right person to act as your agent is one of the most important decisions when creating a power of attorney. This individual will have legal authority to manage your financial and legal matters, so trust and reliability are key. Your agent should be responsible, organized, and willing to act in your best interest.
Many people choose a spouse, adult child, or close friend. Others may prefer a professional, such as an attorney or financial advisor. No matter who you select, your agent should understand their responsibilities and be prepared to handle them when needed.
How to Create a Power of Attorney
Creating a power of attorney requires careful planning to ensure the document meets your needs and follows Minnesota law. Here are the key steps:
- Choose the right type – Decide whether you need a durable, springing, or limited POA based on your situation.
- Select a trustworthy agent – Pick someone responsible who will act in your best interest.
- Draft the document – A POA must clearly outline the agent’s powers and any limitations.
- Sign and notarize – In Minnesota, most POAs require notarization to be legally valid.
- Distribute copies – Give copies to your agent, financial institutions, and anyone else who may need it.
We will guide you through each step to ensure your POA is properly executed and enforceable when needed.
Why You Should Have a Power of Attorney
A power of attorney gives you control over who manages your financial and legal affairs if you ever need assistance. Without one, your family may have to go through a court process to gain authority over your accounts, property, or other responsibilities. That can be expensive, time-consuming, and stressful.
A POA ensures that someone you trust can step in without delay. Whether you need help temporarily—such as during an extended trip—or long-term due to illness or incapacity, having a POA in place makes things easier for you and your loved ones. It’s a simple but powerful way to protect your interests and avoid unnecessary legal complications.
What If I Change My Mind About My POA?
You can revoke or update your power of attorney at any time as long as you are mentally competent. If you no longer want your current agent to have authority, you should:
- Create a written revocation – A signed document stating that you are canceling the POA.
- Notify your agent – Inform them that their authority has been revoked.
- Inform financial institutions – Banks and other entities should receive a copy of the revocation.
- Destroy old copies – This helps prevent confusion.
If you want to name a new agent or adjust your POA’s terms, we will help you draft and execute a new document that reflects your wishes.
Contact an Experienced Minneapolis Power of Attorney Lawyer
A power of attorney is a simple but effective way to protect your finances and legal affairs. Choosing the right agent and having a well-drafted document can prevent unnecessary complications. At Unique Estate Law, we will help you create a POA that fits your needs. Contact us today to get started.