Donald K. Nix - Attorney At Law - Powers of Attorney

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Services offered in Tarrant County, Texas

POWERS OF ATTORNEY

During the initial conference with clients who come in to discuss wills, most attorneys will suggest that they need a POA as much as a will. A few highlights and terms that I cover:

1) If a person becomes unable to handle legal affairs, perhaps because of a severe head injury, the law provides for a Guardianship. This process can be cumbersome and expensive, requiring filing an application in probate court, legal notice to the proposed Ward, evidence that a Guardianship is needed, posting a bond, filing an inventory, applying for permission to sell assets or spend funds. All this work generally requires the assistance of a lawyer. Also, additional legal fees are incurred for as long as the Guardianship lasts, which could be years or even decades. All this is meant to protect the person who needs the Guardian, but if you trust someone enough to give them a General Durable POA, a lot of money and trouble may be avoided. For long term marriages, spouses frequently execute reciprocal POAs.

2) A POA is ineffective upon death.

3) Although many POAs are effective when signed (even without a loss of capacity), they are rarely used until a disability makes their use necessary. However, there is some risk of misuse which is explained during the interview.

4) Durable refers to the ability of the POA to remain effective even after a person loses legal capacity such as in the head injury example mentioned above.

5) General refers to the fact that the POA is intended to permit the attorney-in-fact to perform most any legal acts to the same degree that the principal could.

6) Specific or limited POAs are limited authorizations to perform one or more specific legal acts, such as buying real estate or selling stocks. If you own real estate or stocks, especially if in one name only, a specific POA may be a good idea.