powers of attorney in oregon - questions, answers and practical issues

Powersof Attorney

in OregonQuestionsAnswers

and Practical Issues

What is a power of attorney?

Powers of attorney are very useful estate planning documents, but many people don’t understand what they are.

DOCUMENT

Powers of attorney are legal documents that must meet state requirements.

AUTHORITY

The document gives someone else the ability to make decisions for you.

What can you do with a power of attorney?

Powers of attorney are useful in part because they are so flexible. You can use these documents for a variety of purposes.

You can allow

someone to:

You can allow

someone to:

Manage your

financial affairs.

You can allow

someone to:

Manage your financi

al affairs.

Engage in real estate transactions on your

behalf

You can allow

someone to:

Manage your financi

al affairs.

Engage in real estate transactions on your

behalfCare for

your children

while you are on

vacation

Communicate your

health care wishes with

your physicians

You can allow

someone to:

Manage your financi

al affairs.

Engage in real estate transactions on your

behalfCare for

your children

while you are on

vacation

…and more!

You can allow

someone to:

Manage your financi

al affairs.

Engage in real estate transactions on your

behalfCare for

your children

while you are on

vacation

Communicate your

health care wishes with

your physicians

How Do You Make Them?

It must meet

specific requiremen

ts

Be made in writing

It must meet

specific requiremen

ts

Signed by you

Be made in writing

It must meet

specific requiremen

ts

State the

powers granted

Signed by you

Be made in writing

It must meet

specific requiremen

ts

State the name of

the agent or

attorney-in-fact

Signed by you

Be made in writing

It must meet

specific requiremen

ts

State the

powers granted

Powers Under a POA

You can give your agent as much or as little of your authority as you wish.

In general, powers of attorney are categorized into two different types depending on the powers you grant.

1

Limited

Powers

Limited powers give an agent the ability to perform a specific task, or a limited number of tasks.

They can also grant the agent the power to act in a limited amount of time, or under certain conditions.

2

General

Powers

An agent with general powers can do anything you are legally entitled to do, though there are some limitations. General powers grant as much power to the agent as legally possible.

What is a Principal?

The person who creates the power of attorney is known as the principal.

In order to become a principal, you must:

Be an adult.

You cannot create a power of attorney unless you are at least 18 years old.

Be of soun

d mind

.

Be of soun

d mind

.

Legally capable

of making decision

s

Have not been

declared incompetent by a

court

Be of soun

d mind

.

Legally capable

of making decision

s

Not suffering from a

medical condition

that affects their

cognitive or decision-making abilities

Have not been

declared incompetent by a

court

Be of soun

d mind

.

Legally capable

of making decision

s

As a principal you maintain the right to revoke any powers you create and are never obligated to

create a POA.

Revocation.

When you create a power of attorney you appoint someone who acts in your interests.

That person, the agent, is someone you can fire at any time by revoking the power of attorney.

Automatic Revocation.

Powers of attorney automatically end when you, the principal, lose your ability to revoke them. If you become incapacitated, for example, any powers you have created will automatically terminate.

Your Agen

t

Attorney-in-fact

Not obligator

yAny

willing individu

al

You do not have to choose a lawyer to serve as your agent, nor does your agent have the right to practice law.

No Lawyer Required.

Person or OrganizationAgents are often people, but they can also be organizations.

For example, you might appoint your bank as your agent in some situations where you need to engage in financial transactions.

Alternates

When you create your power of attorney you can choose alternate agents if your first selection becomes unable to fulfill his or her duties.

Capable Adult

Children cannot be agents, and you must select a capable adult. Further, you cannot force anyone to become your agent and must ask that person if he or she wishes to serve in that role.

Durable, Non-Durable, and Springing Powers

Durability

Powers of attorney automatically end if you should become incapacitated. However, there is one key exception to this general rule. If you create a durable power of attorney your agent can still act even after you lose the ability to revoke the POA.

Durable power allows you to appoint someone who will not only be able to act on your behalf now, but also in the event an emergency situation arises and you become incapacitated.

ContinuedRepresentatio

nDurabilit

y

Because an agent can continue to serve after you are incapacitated, this means that you can only terminate the powers if you regain your ability to make choices.

Revocation

ContinuedRepresentatio

nDurabilit

y

Contingent Powers

Springing Power of Attorney

Gives your agent the

ability to act only after

certain circumstances

arise.

Conditions

You can create a springing power that takes effect only after certain events take place, such as you becoming incapacitated.

Termination

Like all other powers, you retain the ability to terminate a springing power whenever you like as long as you’re still capable.

2 Commonly Created Powers

Financial POA

Allows someone else to

control your money or enter into

contracts on your behalf

Buy or sell real

estate

Manage your bank

accounts

Manage your

business

…and

more.

File and pay your taxes

Buy and sell stocks or other

investments

Health Care POA

Health care powers of attorney are also known as advance medical directives. They give you the ability to appoint someone who can make medical decisions for you.

AgentsYou can select a primary

agent and a backup if the first cannot

serve.

WitnessYour POA should be

signed by two witnesses, neither of

whom should be the agent.

AgentsYou can select a primary

agent and a backup if the first cannot

serve.

Useful Only When You Have Them

Many people only use powers of attorney for emergency situations, while others use them in their day-to-day lives. But, you have to make them now while you still have the opportunity.

You can always make a POA

now and make modifications later should you choose.

CourtsIf you don’t make a power of attorney now and you

become incapacitated, an Oregon court will have to

appoint someone to manage your affairs on

your behalf, which can be very costly, especially if

your family fights over who the court should appoint.

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