3 Tips for Setting Up Power of Attorney
If you have concerns about your future abilities or you want to make sure that all of your bases are covered, it’s time to consider setting up a Power of Attorney.
According to the American Bar Association definition, a Power of Attorney is a legal document that gives another person the legal authority to make decisions and act on your behalf. It allows you as the “principal” to appoint another person, called your “agent” or “attorney-in-fact”, to make decisions or take actions on your behalf. These powers can cover financial matters, legal transactions, business operations, or health care decisions, depending on how the document is written.
There are different types of POAs, including:
A General Durable Power of Attorney, which address financial matters and general legal transactions and remains valid even if you become incapacitated
A Springing Power of Attorney, which only takes effect under specific conditions (such as a physician’s confirmation of incapacity)
A Healthcare Power of Attorney, which authorizes someone to make medical decisions for you if you are unable to speak for yourself
A Power of Attorney can be broad or limited in scope, temporary or long-term, and can be customized to suit your exact needs. Because of its power and legal effect, it’s critical that the POA is clearly written, properly executed, and compliant with Missouri law to ensure it will be honored by banks, hospitals, and other institutions when needed.
Let’s review a few tips for getting this document in place.
If you’re thinking about protecting your financial affairs and healthcare decisions, now is the time to set up a Power of Attorney (POA) for financial purposes and one for healthcare decisions. Below are three essential considerations along with guidance on when professional legal support can make a critical difference.
A Power of Attorney is a legal tool that enables another person, known as your agent or attorney-in-fact, to make decisions and act on your behalf. These powers can include handling your finances, paying bills, managing real estate, or making healthcare choices if you become unable to do so yourself. It’s important to review the document carefully and understand its scope, including whether it takes effect immediately or only upon a specified event (sometimes referred to as a “springing” POA). Misusing or misunderstanding these terms can lead to unintended legal consequences, such as acting beyond the authority granted, or having the document rejected by institutions due to incorrect wording. Taking the time now to understand and clearly define these details and learn how to properly use a POA will protect both you and your loved ones later.
Selecting an agent is one of the most important decisions in setting up a POA. The person you appoint should not only be trustworthy, but also capable of acting responsibly under pressure. Many clients consider spouses, adult children, or close friends; others opt to appoint professionals such as a trust company. We help you think through these choices, weighing factors like reliability, communication skills, and how clearly the POA defines what your agent can and cannot do. An agent should understand whether their authority is broad or limited and when they can act. By having these conversations now and documenting expectations thoroughly, you reduce the risk of conflict, misinterpretation, or legal delays when the need arises.
While online kits for drafting a POA may seem convenient, they often fail to account for complexity and mistakes can carry serious consequences. Our attorneys don’t just provide blanks for you to fill in; we partner with you to craft documents that protect your interests. We develop legally sound Powers of Attorney tailored to your unique situation, explaining when it becomes effective, who can act as your agent, and how to sign correctly for sensitive transactions. We also advise on related estate planning tools and walk you through other incapacity considerations. Sitting down with an attorney will also create a record of your wishes that can be referenced in the future in case there’s any confusion or disagreement.
Properly structured Powers of Attorney are more than just legal paperwork, they are key components in protecting your financial well-being and healthcare decisions. By planning ahead and working with experienced counsel, you empower trusted agents to act confidently and legally when needed, while safeguarding your wishes and preserving family harmony.
Contact Assertion Law Firm LLC to schedule a consultation. We will guide you through creating a General Durable Power of Attorney for financial and general legal purposes as well as a Healthcare Power of Attorney including Advance Directives and end-of-life decisions. Reach us today at (888) 887‑4170.
If you have concerns about your future abilities or you want to make sure that all of your bases are covered, it’s time to consider setting up a Power of Attorney.
