The Step-By-Step Process Of Creating A Power Of Attorney In North Carolina

This guide covers the following:

• The different types of power of attorney and how each works.
• How to choose the right person to be your power of attorney.
• The legal steps to take to establish a legal power of attorney.

What Is A Power Of Attorney, And Why Is It Important To Have One In Estate Planning?

A power of attorney is a document that grants somebody that you trust the authority to help you handle and act as you when it comes to managing your tangible and intangible personal property, such as:

• Bank accounts
• Homes
• Land
• Cars

The power of attorney allows that person to act on your behalf, managing your accounts and personal property. A power of attorney is important, as such a person can step in and see to emergency situations when you are away, such as issues with your home or a bank account that require your signature.

In other cases, a power of attorney can step in and act on your behalf should you become incapacitated or face a cognitive decline in old age. With the power of attorney, you have somebody who can handle your estate in your place.

Having a power of attorney can save time, money, and stress for anybody trying to help you out, be it a loved one, family member, or a trusted friend if you’re not able to handle financial or legal matters yourself.

What Are The Types Of Power Of Attorney Documents?

When you’re considering a power of attorney, it helps to know the different types and which one best applies to your situation.

General Power of Attorney handles…

• Your bank accounts and bills
• Your estate
• Your financial matters, including property, personal assets, intangibles, security, stocks, and bonds.

Healthcare Power of Attorney allows a designated person to make healthcare decisions on your behalf when you are not able to do so.

Although it is possible to have one power of attorney for both functions, it’s recommended to have a separate healthcare power of attorney. Doctors are generally much more comfortable with this, and having a healthcare power of attorney in place can make things far simpler for your family in a hospital or other healthcare setting.

How Can I Choose The Right Person To Be A Power Of Attorney?

As a general rule, you shouldn’t pick one person to handle both your legal and health issues, as this can lead to a conflict of interest. Furthermore, different people tend to be better at different things.

For example, you may have a son who is great with finances or a daughter who is more loving and caring when it comes to health care.

Use each person’s strengths to your benefit as you consider who to place in each role. Your general power of attorney should be familiar with financial markets, real estate, and finances. Your healthcare power of attorney should ideally be familiar with healthcare or be in the healthcare field as their line of work.

What Should I Tell My Attorney Before Signing The Power Of Attorney?

It’s important for your attorney to have an understanding of your financial and healthcare concerns before you establish a power of attorney. Topics to discuss will include…

• Assets
• Debts
• Who manages your finances
• If you have a professional managing your estate

Your attorney may also ask more personal questions, such as…

• Who is your doctor?
• Are you preparing to pay for your child’s wedding?
• Are you selling a house?
• Are you planning on retiring?

It is important to discuss all these different factors to make sure that the document produced matches your goals.

How Can A Well Drafted Power Of Attorney Can Help Families

A well-drafted power of attorney can be a lifeline in some situations. Several years ago, I handled a case where a client was struggling with health issues that would likely impact his future ability to care for himself. He set up a power of attorney to protect his interests and act on his behalf when he would no longer be able to.

Now, this gentleman had a son who had abandoned the family. They loved him to death, but he did not want anything to do with them.

When this son finally showed up, the power of attorney document helped cut down any infighting that could have erupted, as it very clearly established the wishes of his parents. Everybody knew what was expected and what they needed to do. This certainty actually helped the family reconnect and reconcile once this son had calmed down.

Still Have Questions? Ready To Get Started?

For more information on North Carolina Power of Attorney requirements, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (252) 371-0127 today.