When
you have power of attorney how do you sign?
Sign the principal’s name first, not your
own. This eliminates any confusion that you’re acting in your own interests or
assuming any personal liability for what you’re signing. The principal is
actually the one engaging in the transaction. Make sure the document you sign
is proper for both you and your principal.
Step 3
Sign
your own name after the principal’s name, after including the word “by.” This
indicates that the principal is engaging in the transaction through you. For
example, you would write, “Sally Smith, by Samuel Smith.....”
Step 4
End
the signature by indicating that you’re acting under power of attorney. You can
do this in one of several ways. After your name, you can write in the words
“agent,” “attorney in fact,” “power of attorney” or simply, “POA.” Your final
signature should read similar to "Sally Smith, by Samuel Smith, power of
attorney."
Power of Attorney
An important part
of lifetime planning is the power of attorney. A power of attorney is accepted
in all states, but the rules and requirements differ from state to state. A
power of attorney gives one or more persons the power to act on your behalf as
your agent. The power may be limited to a particular activity, such as closing
the sale of your home, or be general in its application. The power may give
temporary or permanent authority to act on your behalf. The power may take
effect immediately, or only upon the occurrence of a future event, usually a
determination that you are unable to act for yourself due to mental or physical
disability. The latter is called a "springing" power of
attorney. A power of attorney may be revoked, but most states require
written notice of revocation to the person named to act for you.
Source https://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/power_of_attorney.html
The person named
in a power of attorney to act on your behalf is commonly referred to as your
"agent" or "attorney-in-fact." With a valid power of
attorney, your agent can take any action permitted in the document. Often your
agent must present the actual document to invoke the power. For example, if
another person is acting on your behalf to sell an automobile, the motor
vehicles department generally will require that the power of attorney be
presented before your agent's authority to sign the title will be honored.
Similarly, an agent who signs documents to buy or sell real property on your
behalf must present the power of attorney to the title company. Similarly, the
agent has to present the power of attorney to a broker or banker to effect the
sale of securities or opening and closing bank accounts. However, your agent
generally should not need to present the power of attorney when signing checks
for you.
Why would anyone
give such sweeping authority to another person? One answer is convenience. If
you are buying or selling assets and do not wish to appear in person to close
the transaction, you may take advantage of a power of attorney. Another important
reason to use power of attorney is to prepare for situations when you may not
be able to act on your own behalf due to absence or incapacity. Such a
disability may be temporary, for example, due to travel, accident, or illness,
or it may be permanent.
If you do not have
a power of attorney and become unable to manage your personal or business
affairs, it may become necessary for a court to appoint one or more people to
act for you. People appointed in this manner are referred to as guardians, conservators,
or committees, depending upon your local state law. If a court proceeding,
sometimes known as intervention, is needed, you may not have the ability to
choose the person who will act for you. Few people want to be subject to a
public proceeding in this manner so being proactive to create the appropriate
document to avoid this is important. A power of attorney allows you to choose
who will act for you and defines his or her authority and its limits, if any.
In some instances, greater security against having a guardianship imposed on
you may be achieved by you also creating a revocable living trust.
Who Should Be Your Agent?
You may wish to
choose a family member to act on your behalf. Many people name their spouses or
one or more children. In naming more than one person to act as agent at the
same time, be alert to the possibility that all may not be available to act
when needed, or they may not agree. The designation of co-agents should
indicate whether you wish to have the majority act in the absence of full
availability and agreement. Regardless of whether you name co-agents, you
should always name one or more successor agents to address the possibility that
the person you name as agent may be unavailable or unable to act when the time
comes.
There are no
special qualifications necessary for someone to act as an attorney-in-fact
except that the person must not be a minor or otherwise incapacitated. The best
choice is someone you trust. Integrity, not financial acumen, is often the most
important trait of a potential agent.
How The Agent Should Sign?
Assume Michael
Douglas appoints his wife, Catherine Zeta-Jones, as his agent in a written
power of attorney. Catherine, as agent, must sign as follows: Michael Douglas,
by Catherine Zeta-Jones under POA or Catherine Zeta-Jones, attorney-in-fact for
Michael Douglas. If you are ever called upon to take action as someone’s
agent, you should consult with an attorney about actions you can and cannot
take and whether there are any precautionary steps you should take to minimize
the likelihood of someone challenging your actions. This is especially
important if you take actions that directly or indirectly benefit you
personally.
What Kinds of Powers Should I Give My Agent?
In addition to
managing your day-to-day financial affairs, your attorney-in-fact can take
steps to implement your estate plan. Although an agent cannot revise your will
on your behalf, some jurisdictions permit an attorney-in-fact to create or
amend trusts for you during your lifetime, or to transfer your assets to trusts
you created. Even without amending your will or creating trusts, an agent can
affect the outcome of how your assets are distributed by changing the ownership
(title) to assets. It is prudent to include in the power of attorney a clear
statement of whether you wish your agent to have these powers.
Gifts are an
important tool for many estate plans, and your attorney-in-fact can make gifts
on your behalf, subject to guidelines that you set forth in your power of
attorney. For example, you may wish to permit your attorney-in-fact to make
"annual exclusion" gifts (up to $14,000 in value per recipient per
year in 2013) on your behalf to your children and 7grandchildren. It is
important that the lawyer who prepares your power of attorney draft the
document in a way that does not expose your attorney-in-fact to unintended
estate tax consequences. While some states permit attorneys-in-fact to make
gifts as a matter of statute, others require explicit authorization in the
power of attorney. If you have older documents you should review them with your
attorney. Because of the high estate tax exemption ($5 million inflation
adjusted) many people who had given agents the right to make gifts may no
longer wish to include this power. Others, however, in order to empower their
agent to minimize state estate tax might continue or add such a power. Finally,
there may be reasons not to limit the gifts your attorney-in-fact may make to
annual exclusion gifts in order to facilitate Medicaid planning or to minimize
or avoid state estate tax beyond what annual exclusion gifts alone might
permit.
In addition to the
power of your agent to make gifts on your behalf, many powers of your
attorney-in-fact are governed by state law. Generally, the law of the state in
which you reside at the time you sign a power of attorney will govern the
powers and actions of your agent under that document. If you own real estate,
such as a vacation home, or valuable personal property, such as collectibles,
in a second state, you should check with an attorney to make sure that your
power of attorney properly covers such property.
What if I move?
Generally, a power
of attorney that is valid when you sign it will remain valid even if you change
your state of residence. Although it should not be necessary to sign a new
power of attorney merely because you have moved to a new state, it is a good
idea to take the opportunity to update your power of attorney. The update
ideally should be part of a review and update of your overall estate plan to be
sure that nuances of the new state law (and any other changes in circumstances
that have occurred since your existing documents were signed) are addressed.
Will my Power of
Attorney expire?
Some states used to require the
renewal of a power of attorney for continuing validity. Today, most states
permit a “durable” power of attorney that remains valid once signed until you
die or revoke the document. You should periodically meet with your lawyer,
however, to revisit your power of attorney and consider whether your choice of
agent still meets your needs and learn whether developments in state law affect
your power of attorney. Some powers of attorney expressly include termination
dates to minimize the risk of former friends or spouses continuing to serve as
agents. It is vital that you review the continued effectiveness of your
documents periodically.
Source https://www.americanbar.org/groups/real_property_trust_estate/resources/estate_planning/power_of_attorney.html
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