One of the most important parts of estate planning involves electing a power of attorney. Powers of attorney are used to appoint a trusted individual to be able to make decisions in the event that you are unable to. Contact our firm today to learn more about the different types of powers of attorney and how we can best serve you. Our skilled New York estate planning attorneys are dedicated to helping you make the best choices for you, your family, and your future.
Understanding Powers of Attorney in New York
The main objective of a power of attorney is to enable an individual to select a loved one and give them the authority and legal right to manage certain elements of their life in the event that special circumstances arise. Usually, this power is given to a loved one, such as a child, parent, spouse, close relative, friend, business partner, etc.
When a person is acting in this authority, they are called an agent or attorney-in-fact under New York law.
What Can a New York Power of Attorney Allow an Agent to Do?
Once appointed, your power of attorney gives you the authority to act on your behalf under New York law. The exact actions they can take will depend on the type of power of attorney you establish. However, common actions an agent may be allowed to take include:
- Paying bills
- Managing financial accounts
- Making deposits or withdrawals
- Managing your investments
- Hiring caregivers
- Filing your taxes
- Accessing your medical records (with HIPAA authorization)
- Funding trusts
- Managing your property
You should note that banks, hospitals, and other financial institutions in and around Rockland County will require copies of a legally valid power of attorney in order to allow an agent to access your accounts
What Are The Different Kinds Of Powers Of Attorney?
There are many different types of powers of attorney that cater to unique situations in Rockland County. You can choose from a number of different types depending on what will best accommodate your needs. You may even be able to combine the different types based on your circumstances.
Main Types of Powers of Attorney
- General power of attorney: A general power of attorney authorizes the agent to conduct the same financial actions you would perform. This can involve filing taxes, executing contracts, and borrowing money.
- Limited power of attorney: A limited power of attorney allows a person to take specific actions of your choosing. The agent’s power is limited to these actions and these actions only.
- Durable power of attorney: A durable power of attorney allows an agent to act for you even if you become incapacitated. It allows your agent to continue making financial and legal decisions.
- Springing power of attorney: A springing power of attorney becomes effective after a triggering event, such as a medical or physical disability.
Additional Forms of Power of Attorney
While those are among the most common types of powers of attorney established in New York, they are not the only options. As such, you may wish to establish the following:
- Non-durable power of attorney: Unlike a durable power of attorney, which continues when you become incapacitated, a non-durable power of attorney will end under these circumstances
- Medical power of attorney: This allows you to appoint someone to make healthcare decisions on your behalf if you become incapacitated. However, this is technically governed by the Health Care Proxy Act in New York.
- Financial power of attorney: This appointment gives someone the power to make only financial decisions on your behalf.
Revoking or Modifying a Power of Attorney in New York
It’s important to understand that you reserve the right to change or revoke a power of attorney at any time, so long as you are of sound mind. You may also be able to establish a new power of attorney that will override a previous one.
In the event that you are incapacitated, the court may remove an agent who is acting improperly or outside of your best interests.
Contact Our Experienced Rockland County Estate Planning Firm Today
At the Lauterbach Law Firm, we understand that these matters can be incredibly difficult to navigate. Making this decision is not something that should be taken lightly, which is why our team is here to help. We can ensure you understand your options so you can make a decision you feel confident in. If you’re ready to obtain peace of mind for the future, contact us today to learn how we can walk you through this process.
