common questions about north carolina powers of attorney - part 2

“When people create powers of attorney, they do so in order to allow one or more agents the ability to

represent them and their interests.”

COMMON QUESTIONS ABOUT NORTH CAROLINA

POWERS OF ATTORNEY PART 2

CHERYL K. DAVID North Carolina Estate Planning and Elder Law Attorney

http://www.cheryldavid.com/estate-planning-greensboro-nc/


Common Questions about North Carolina Powers of Attorney–Part www.cheryldavid.com

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Last week we looked at several commonly asked questions that many

people have about powers of

attorney. This week we wanted

to focus on some more practical

issues that surround powers of

attorney that we didn't directly

address in our last discussion.

Whenever we talk about legal

issues such as powers of

attorney, estate planning, or

anything else, it's important to

remember that nothing we say

or write will ever be a

substitute for the personalized

advice we can give you by

sitting down and discussing

your concerns. Always make

sure you ask us any questions

you have and speak to us whenever you need legal advice about powers of

attorney, or anything else.

http://www.cheryldavid.com/


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PRACTICAL USE OF POA

When people create powers of attorney, they do so in order to allow one or

more agents the ability to represent them and their interests. But how does

this take place?

The process is fairly simple. When a principal decides to create a power of

attorney, he or she creates a document that has to meet some basic state

legal standards. The document will, at the very least, name the person who

is to serve as agents, detail the agent's powers, and prove that the principal

is creating the documents by including a signature section, and typically a

notarization by a public notary.



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Once created and given to the agent, the power of attorney document is

then typically sufficient to allow third parties to recognize the agent's

authority.

So, for example, should the agent want to interact with a bank or financial

institution on the principal's behalf, the agent will typically have to present

the power of attorney document to the third-party first. In some situations

third parties may have their own requirements, such as requiring that a

power of attorney document have been drafted within the previous six

months. If this is the case, it is in the principal's best interest to first

determine what, if any, requirements the third parties have about powers of

attorney, and craft powers of attorney that meet those additional

impositions.



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REPRESENTATIVES, AGENTS, AND EXECUTORS

When people create a power of attorney and appoint an agent, they often

assume that the agent they appoint can serve as their estate representative

after they die. An estate representative, also known as a personal

representative, estate administrator, or executor, is responsible for

managing your estate through the probate process, and ensuring that your

wishes are honored after you have passed away. While it is true that the

same person who serves as your agent under a power of attorney can serve

as your executor throughout the probate process, you cannot accomplish

this simply by creating a power of attorney document.

An agent's authority under a power of attorney automatically ends when the

principal dies. So, if you want your agent to serve as your estate

representative, you have to use other tools. Specifically, you have to appoint

someone through a validly created last will and testament. As long as a



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court determines that your will meets all state legal standards, it will

appoint the person you choose as your executor.

Of course, this might seem unnecessarily tedious or cumbersome to many

people, as creating two documents to serve the same basic purpose might

seem redundant. Regardless, this is how the law works, and it is what you

must do in order to ensure that your wishes are protected. This is one of the

many reasons why talking to an attorney about your desires before you craft

a power of attorney or any other estate planning document is absolutely

essential.



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CREATING THE POA YOU NEED

The idea behind the

power of attorney is

relatively simple in that

it allows any capable

adult the ability to give

another person or

organization the ability

to make choices on his

or her behalf. Powers of

attorney allow you to

appoint agents or representatives that can represent your interests as much

or as little as you desire. By delegating this authority to others, it gives you

more options than you would have if you don't create powers of attorney.

But determining you might want to make a power of attorney, or that such

a document might be useful to you, is only the first step in the process. The

next step is to talk to a lawyer to discuss your options when it comes to

creating the power of attorney document that fits you and your

circumstances. No two powers of attorney can ever be identical, as they

serve different people in different situations. Creating the right POA for you

and your situation is a process that begins once you schedule an

appointment to come speak to us.



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ABOUT THE AUTHOR

Cheryl David is a graduate of UNC-Chapel Hill, the

University of Baltimore School of Law, and the

prestigious Trial Lawyer’s College presided over by

Gerry Spence. A former Administrative Judge, Cheryl

is certified as an Estate Planning Law Specialist by the

ABA accredited Estate Law Specialists Board, Inc. She

is also a member of the American Academy of Estate

Planning Attorneys, Medicaid Practice Systems and

the National Academy of Elder Law Attorneys.

In 2008, Cheryl received the honor of becoming a Fellow with the American Academy of Estate Planning Attorneys. The Fellow program recognizes Academy Members who demonstrate advanced expertise and significant practical experience in the total estate planning, trust, tax planning, guardianship, probate and estate administration fields. In order to maintain this advanced expertise, Cheryl takes over 36 hours of continuing education in Estate Planning, Elder Law, and Taxation each year. Also a Financial Planner, she holds the Series 7 and 66 Investment Licenses in addition to both Insurance and Long Term Care/Medicare designations.

Her professional capabilities, together with over 25 years in practice, have combined to bring positive change to the lives of over 4500 clients and their families.

528 College Road Greensboro, NC 27410 Phone: (336) 547-9999 Fax: (336) 547-9477

WWW.CHERYLDAVID.COM

