Powers of attorney are often a source of confusion both for the principal (the person who gives the power of attorney) and the agent (the person authorized to do so something on behalf of the principal). This column discusses when a power of attorney goes into effect.
Powers of attorney can be for many purposes but generally fall into two categories, medical and financial.
A medical power of attorney is the appointment of an agent to make health care decisions for you. Under Texas law, a medical power of attorney goes into effect if you are unable to make your own health care decisions and this fact is certified in writing by your physician.
The most common form of financial power of attorney is the statutory durable power of attorney. Under Texas law this power of attorney can go into effect on the day you sign it or it can go into effect only on your disability or incapacity. You make that choice when you sign your power of attorney.
Unless another definition of disability or incapacity is contained in the power of attorney, the principal is considered disabled or incapacitated when a physician certifies in writing after the date the power of attorney is signed, based on the physician’s medical examination of you, that you are mentally incapable of managing your financial affairs.
Who you appoint as your agent and under what circumstances you want the appointment to go into effect is a matter to be discussed with your estate planning attorney. Just signing a form off of the internet can create more problems that it solves.
Attorney Rob Morris is an attorney at Hammerle Morris Law Firm, a boutique law firm offering services in estate planning, probate, guardianship, business law, litigation, and real estate. Contact him at (972) 436-9300. This article does not constitute as legal advice.
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