Trusted Powers of Attorney Lawyers in Plymouth, Michigan
At Steslicki & Ghannam PLC, our Plymouth estate planning attorneys represent clients of all ages and walks of life throughout Michigan who understand the value of designating powers of attorney to ensure their wishes and best interests are protected when they cannot protect themselves.
Powers of attorney (POA) are crucial legal documents that empower an individual or entity (agent) to act on behalf of another person (principal) in various legal and financial matters. Understanding the different types of POA, each with its unique purpose and level of authority, is essential for anyone concerned with protecting their best interests.
We can help ensure your POA decisions align with your short- and long-term goals so no detail of your life is left to chance. Contact our Plymouth powers of attorney lawyers today to learn more.
Who Agrees to the Legal Arrangements Outlined in Powers of Attorney in Michigan?
In power of attorney documents, two parties, the principal and the agent, play vital roles in the legal arrangement.
The principal is the person who grants authority to another individual or entity to act on their behalf in legal or financial matters. The principal initiates the POA and has the legal capacity to make decisions regarding the delegation of authority.
The principal retains the power to revoke or amend the POA as long as they have the mental capacity to do so.
The agent, also known as the attorney-in-fact or proxy, is the person who is authorized to act on behalf of the principal according to the terms and limitations specified in the POA document. The agent must act in the principal’s best interests and follow any instructions or restrictions outlined in the POA. The agent has a fiduciary duty to the principal, meaning they must act with honesty, integrity, and loyalty when making decisions on the principal’s behalf.
What are the Different Types of Powers of Attorney?
A legally valid POA protects the principal and the agent. It clarifies the agent’s authority to act on behalf of the principal and can help prevent disputes or challenges regarding managing the principal’s affairs.
Common types of powers of attorney include:
- General Power of Attorney
A general power of attorney grants broad authority to the agent to make financial and legal decisions on behalf of the principal. This can include managing bank accounts, signing contracts, buying or selling property, and handling other financial matters. It remains valid until the principal becomes incapacitated or revokes the POA.
- Limited or Special Power of Attorney
A limited or special power of attorney grants the agent specific powers for a limited duration or purpose. For example, the principal may grant the agent authority to handle a particular real estate transaction or to sign documents on their behalf while they are out of the country.
- Durable Power of Attorney
A durable power of attorney remains effective even if the principal becomes incapacitated or unable to make decisions. This type of POA is often used for long-term planning to ensure that someone can manage the principal’s affairs if they become incapacitated due to illness or disability.
- Healthcare Power of Attorney
Also known as medical power of attorney or healthcare proxy, this document authorizes the agent to make medical decisions on behalf of the principal if they cannot do so themselves. The agent typically has the authority to make medical treatments, procedures, and end-of-life care decisions based on the principal’s wishes or best interests.
- Financial Power of Attorney
Similar to a general power of attorney, a financial power of attorney expressly grants authority to the agent to manage the principal’s financial affairs. This can include paying bills, managing investments, filing taxes, and other financial tasks.
If you have questions about the type of power of attorney that best suits your needs, our skilled estate planning attorneys in Plymouth have answers. We can ensure the document is properly drafted and executed according to applicable Michigan laws and regulations while emphasizing the importance of choosing a trustworthy agent who will act in your best interests.
Contact our power of attorney lawyers in Michigan today to learn more about the legal rights and options that will help protect you now and in the future.
What are the Benefits of Designating Powers of Attorney in Michigan?
For the principal, knowing they have designated a trusted individual to manage their affairs if needed can provide peace of mind and reduce anxiety about the future. Similarly, being appointed as a POA can be seen as a sign of trust and responsibility for the agent.
Other benefits of designating powers of attorney in Michigan include:
- Continuity of Affairs
POAs ensure that someone is authorized to act on the principal’s behalf if they become incapacitated or unable to make decisions due to illness, disability, or absence. This continuity can help prevent disruptions in financial matters and ensure that essential affairs are managed effectively.
- Asset Management
POAs allow the principal to appoint someone they trust to manage their financial affairs and make decisions on their behalf. This can include paying bills, managing investments, buying or selling property, and handling other financial transactions.
- Avoiding Court Intervention
Without a POA in place, family members may need to petition the court for guardianship or conservatorship to manage their affairs if the principal becomes incapacitated. This process can be time-consuming, expensive, and emotionally challenging. A POA allows the principal to designate someone to act on their behalf without needing court intervention.
- Healthcare Decision Making
Healthcare POAs empower the agent to make medical decisions on behalf of the principal if they cannot do so themselves. This ensures that the principal’s wishes regarding medical treatment and end-of-life care are followed, providing peace of mind for both the principal and their loved ones.
- Flexibility and Customization
POAs can be tailored to meet the principal’s specific needs and preferences. They can grant broad or limited authority, specify the duration of authority, and include instructions or limitations on the agent’s powers. This flexibility allows the principal to customize the POA to their unique circumstances and preferences.
Do You Have Questions About the Different Types of Powers of Attorney in Michigan?
At Steslicki & Ghannam PLC, our Plymouth powers of attorney lawyers understand that planning for incapacitation is a challenging conversation with anyone, especially those closest to you. Unfortunately, without these specific legal agreements in place, financial institutions, healthcare professionals, and others will not simply take your loved one’s word for your wishes.
Anyone who wants to ensure that their affairs are managed according to their wishes in case of incapacity or inability to make decisions should consider creating powers of attorney.
We can help ensure your POA is legally binding and customized to fully cover your wishes. Contact our skilled Plymouth powers of attorney lawyers today to discuss your needs.
