Common Power Of Attorney Mistakes
According to the National Institutes of Health (NIH), up to 36% of all American seniors have powers of attorney. These people may understand the potential benefits of these estate planning documents – including peace of mind. However, the mere presence of a power of attorney may not be enough. These estate planning tools must be effective to provide their intended benefits, and a simple mistake could invalidate the documents. Power of attorney mistakes are more common than many Florida residents realize – and they can lead to all kinds of issues. One of the most obvious ways to avoid these mistakes is to work with an experienced estate planning attorney in Florida. Consider dialing (561) 677-8384 to learn more about this subject with Loughlin Law, P.A.
The Mistake of Not Obtaining the Proper Signatures
The Florida Bar describes powers of attorney in detail – including the legal requirements for these documents. Particularly important details involve signature and witness requirements. Under Florida law, the principal must sign their power of attorney in the presence of two witnesses. These witnesses must also sign the document, and a notary is required. The Florida Bar also notes that “pre-printed forms” could easily become invalid, highlighting the danger of “DIY” powers of attorney. To ensure that powers of attorney are valid, Florida residents may want to avoid various websites and apps that claim to offer powers of attorney “in a few clicks.”
The Mistake of Selecting an Agent Who Is Too Old
Many common power of attorney mistakes involve the agent, and one of the most important steps in creating these documents is selecting the agent. Many married individuals assume that they should simply choose their spouses as agents. After all, spouses generally know each other better than anyone else – and they may know what each other would want in various scenarios. While this could be the right choice in certain situations, problems may arise due to the similar ages of the spouses. If one of the spouses starts to experience medical issues and becomes incapacitated, the other may also be struggling with their own medical issues at the same time. The worst-case scenario is that the agent dies before the principal. Of course, those with much younger spouses do not need to worry as much about this issue.
Experienced estate planning attorneys at established firms like Loughlin Law, P.A. often recommend that their clients choose younger agents. For example, it might make more sense to choose an adult child rather than a spouse. Some individuals might prefer to choose younger siblings. A responsible nephew or niece may also represent a suitable choice. In this situation, the agent is much more likely to be in good health when the principal becomes incapacitated. They are also more likely to be alive.
The Mistake of Not Updating Powers of Attorney
To remain effective, powers of attorney must go through regular updates. A common mistake is to create this estate planning document and then never revisit it. Florida residents often incorrectly assume that estate planning is a one-time process. In reality, almost every aspect of a functional estate plan should go through regular updates. The general rule is to update an estate plan every three to five years. More frequent updates may be necessary for seniors who encounter medical issues – or when major life changes occur over a short period. This applies not only to powers of attorney, but also Wills, living wills, trusts, and other documents.
Why are these updates so important? A power of attorney usually includes detailed instructions for agents. These instructions are often helpful for agents navigating complex decisions on financial or medical matters. After a major life change occurs, some of these instructions may become obsolete. Other life changes may necessitate the creation of completely new instructions. For example, a power of attorney may contain instructions on how to handle a family business. If the principal gets divorced before becoming incapacitated, they may divide their business with their former spouse. This could make existing instructions difficult to follow, especially if the former spouse gains partial control of the business. There are many other potential examples of life changes that require updates to powers of attorney.
The Mistake of Not Choosing a Backup Agent
Florida residents can avoid many potential issues by choosing “backup agents” for their powers of attorney. With a backup agent selected, principals can avoid problems if their first choices are too old, sick, or deceased when incapacitation occurs. Some people choose more than one backup agent, ensuring that their power of attorney remains functional even in the worst-case scenario.
The Mistake of Not Considering Living Wills
A living will is another type of estate planning document that can perform the same basic function as a power of attorney. However, this document allows patients to make their own decisions ahead of time instead of relying on agents. Residents may wonder why they need to create both estate planning documents, especially if both tools perform the same role. One might assume that only a power of attorney is necessary, since an agent can make virtually any medical or financial decision imaginable.
While this might be true, Florida residents should consider the benefits of making their own decisions via living wills. Agents may face extremely difficult choices. For example, a senior might designate their adult child as their agent. What happens if this individual must decide whether to end life-sustaining treatment? Sometimes, these individuals struggle with guilt and regret – even after making the right choice. A living will creates a “set of instructions” that loved ones can follow. When they no longer bear the burden of difficult decisions, regret and guilt may be less likely.
Cover More Estate Planning Topics With Loughlin Law, P.A.
Remember, a power of attorney represents only one potential estate planning strategy – and there are many others to consider. An effective estate planning strategy often includes many tools, including living wills. Perhaps the most foundational aspect of a functional estate plan is a Last Will and Testament. Florida residents may want to cover these additional documents during conversations about powers of attorney, since each estate planning tool should complement one another. Whether families are beginning their estate planning journeys or they already have various documents ready, an estate planning attorney in Florida may be able to help. Consider taking this conversation one step further by contacting Loughlin Law, P.A. at (561) 677-8384.
