What Every Family Needs to Know About Powers of Attorney
Life can be unpredictable. Whether it’s a sudden illness, an accident, or simply the natural process of aging, unexpected situations can leave you unable to make important decisions for yourself. A Power of Attorney (POA) is one of the most valuable tools for protecting your interests when life takes an unexpected turn.
At Ryland & Merchak, PC, we’ve seen how having the right POA can spare families confusion and stress during difficult times.
If you haven’t yet created a Power of Attorney, now is the perfect time to learn how this document can help you safeguard your well-being and protect your loved ones. Reach out to our Virginia estate planning lawyers today to get started on building a plan that gives you peace of mind.
What a Power of Attorney Does
A Power of Attorney is a legal document that gives another person—the “agent” or “attorney-in-fact”—the authority to act on your behalf. This authority can apply to financial, legal, or healthcare decisions, depending on the type of Power of Attorney you establish.
If you’re unable to handle your affairs due to illness, absence, or incapacity, your chosen agent can step in to make decisions according to your wishes. Without a Power of Attorney in place, your loved ones may have to go through court proceedings to gain the authority to help you—an often time-consuming and emotionally taxing process.
In short, a Power of Attorney provides clarity, control, and protection when you can’t act for yourself.
Types of Powers of Attorney
Not all Powers of Attorney serve the same purpose. Each type grants different levels of authority, lasts for varying durations, and applies to specific areas of your life.
Here’s a closer look at the most common types of Powers of Attorney and what they do:
General Power of Attorney: Grants broad authority to your agent to handle financial and legal matters on your behalf. This document is typically used when you need someone to manage affairs temporarily or while you’re unavailable.
Durable Power of Attorney: Remains valid even if you become incapacitated. This type provides long-term protection, ensuring your agent can continue managing your affairs if you can’t.
Limited (or Special) Power of Attorney: Gives your agent authority over specific actions or transactions, such as selling a property or managing one bank account.
Springing Power of Attorney: “Springs” into effect only under certain conditions—usually when a doctor certifies that you’re incapacitated.
Medical (or Healthcare) Power of Attorney: Authorizes your agent to make healthcare and medical treatment decisions if you’re unable to communicate your wishes.
Each type serves a distinct purpose. Depending on your personal and financial circumstances, it’s often beneficial to have more than one in place to cover both financial and medical decision-making.
Why Every Adult Should Have a Power of Attorney
Many people think a Power of Attorney is only for older adults or those facing health challenges. In reality, every adult should have one. Life can change in an instant, and being prepared means your affairs can be managed without unnecessary complications.
Here are a few key reasons why this document is so valuable:
Accidents and emergencies happen: Even a short hospital stay can create challenges for managing bills, accounts, and legal matters.
It prevents court involvement: Without a Power of Attorney, your family might need to petition the court for guardianship or conservatorship.
It reflects your personal wishes: You decide who will act on your behalf, not the courts.
It provides continuity: Your finances, property, and healthcare decisions continue smoothly, even if you can’t oversee them personally.
By creating a Power of Attorney before it’s needed, you give yourself control and your family reassurance that your interests will be protected.
Choosing the Right Agent
Selecting the right person to serve as your agent is one of the most important decisions you’ll make when setting up a Power of Attorney. This person will have significant responsibility and access to your personal affairs, so trust and reliability are essential.
Key qualities to look for include:
Trustworthiness: Your agent should always act in your interest and handle your assets responsibly.
Financial or legal competence: They don’t need to be a lawyer or accountant, but they should be comfortable managing money and paperwork.
Good communication skills: Your agent may need to interact with doctors, attorneys, or financial institutions, so clear communication matters.
Proximity: It’s often helpful to choose someone who lives nearby in case they need to act quickly.
Willingness to serve: Always confirm that the person you choose is willing and able to take on the responsibility.
Before finalizing your choice, discuss your expectations openly. You might also consider naming a successor agent who can step in if your first choice is unable to serve.
Taking the time to choose the right agent helps prevent confusion and potential disputes later.
Powers Granted Under a Power of Attorney
A Power of Attorney can be customized to fit your exact needs. You can grant your agent broad authority or limit their power to specific actions.
Here are some of the most common powers that can be granted:
Managing bank accounts and investments: Paying bills, making deposits, or handling transactions.
Buying or selling property: Managing real estate or other assets.
Filing taxes: Preparing and submitting tax returns on your behalf.
Managing business interests: Overseeing a business if you’re temporarily unavailable.
Making healthcare decisions: Choosing treatments, approving medications, or selecting care facilities (in a healthcare POA).
Handling government benefits: Managing Social Security, disability, or veterans’ benefits.
You decide how much authority to give your agent. Many people prefer to grant only the powers they’re comfortable delegating while keeping others reserved.
Working with a knowledgeable attorney helps you tailor your Power of Attorney so it reflects your specific preferences and circumstances.
How Powers of Attorney Take Effect and End
A Power of Attorney’s effectiveness depends on how it’s written. Some take effect immediately upon signing, while others become active only under certain conditions.
When a Power of Attorney becomes effective:
A general or durable POA often becomes effective as soon as it’s signed.
A springing POA activates only after a specific event—such as a doctor declaring you incapacitated.
When it ends:
If you revoke it in writing.
Upon your death.
If your agent becomes unable or unwilling to serve (and no successor is named).
In some cases, if you get divorced and your former spouse is your agent (depending on state law).
Understanding when your Power of Attorney starts and ends helps you plan for different life scenarios and prevents misunderstandings later.
Common Mistakes to Avoid When Creating a Power of Attorney
Creating a Power of Attorney is straightforward with the right guidance, but small errors can lead to significant problems later.
Here are some mistakes families should watch out for:
Not updating the document: Life changes—marriage, divorce, or relocation—can affect your Power of Attorney. Regular updates keep it relevant.
Choosing the wrong agent: Selecting someone untrustworthy or unprepared can cause financial and emotional harm.
Leaving terms too broad or too narrow: Giving too much power can invite misuse; too little power can make it hard for your agent to help.
Failing to communicate your wishes: Make sure your agent and family understand what authority you’ve granted and your overall intentions.
Not keeping copies accessible: Your agent and relevant institutions should know where to find the document when needed.
Taking the time to review your Power of Attorney with a qualified attorney helps prevent these pitfalls and keeps your plan strong and effective.
How a Power of Attorney Fits Into Your Estate Plan
A Power of Attorney is one part of a well-rounded estate plan. While it helps manage your affairs during your lifetime, it works best when combined with other key documents.
These include:
A Last Will and Testament: Directs how your property is distributed after your death.
A Living Trust: Manages your assets both during your lifetime and after, often avoiding probate.
An Advance Medical Directive: Outlines your healthcare wishes and works alongside your medical Power of Attorney.
Together, these documents create a comprehensive plan that protects your finances, your health, and your loved ones—no matter what happens.
Updating Your Power of Attorney
Life rarely stays the same, and your Power of Attorney shouldn’t either. It’s wise to review your document every few years or after major life events.
Consider updating your Power of Attorney when:
You move to another state.
Your marital status changes.
Your agent passes away or becomes unable to serve.
You acquire new assets or start a business.
Your health condition changes significantly.
By keeping your Power of Attorney current, you make sure it continues to serve your interests and reflects your present circumstances.
How We Help Families Create Strong Powers of Attorney
At Ryland & Merchak, PC, we understand that every family’s needs are unique. We take the time to learn about your goals, concerns, and relationships before drafting a Power of Attorney that reflects your values and priorities.
We help clients:
Choose the right type of Power of Attorney based on their circumstances.
Select trustworthy agents who will act responsibly.
Draft clear and legally sound documents tailored to state laws.
Review and update existing Powers of Attorney to keep them up to date.
Our goal is to help families make informed choices and feel confident that their interests are protected, no matter what the future holds.
Contact a Skilled Estate Planning Lawyer
Taking the time to create a Power of Attorney is one of the most caring decisions you can make for your family. Whether you need help drafting your first document or reviewing an existing one, Ryland & Merchak, PC is here to assist.
Our attorneys, William M. Ryland and Sally Hook Merchak, work closely with clients in Woodbridge, Virginia, and throughout Northern Virginia—including Prince William County, Stafford County, and Fairfax County. We’ll guide you through each step with clarity and compassion, helping you create documents that protect your well-being and your loved ones.
Don’t wait until it’s too late to make these important decisions. Reach out to Ryland & Merchak, PC today to schedule a consultation and take the next step toward peace of mind.
