In Algona, Iowa, power of attorney is an arrangement in which one person (the principal) gives another (the attorney-in-fact) the ability to act on the principal's behalf in specific situations, and under specific conditions. Power of attorney might be granted for any number of reasons, but it is most frequently set up to allow the attorney-in-fact to make financial and medical decisions on the principal's behalf in the event that the principal becomes incapacitated.
The principal can state in advance the scope and nature of the attorney-in-fact's authority. The agreement should be very clear on this matter, so you give the attorney-in-fact enough authority to carry out your instructions, but not more than they need in order to accomplish your objectives. Moreover, the attorney-in-fact should be someone you trust, such as a family member or life partner. You also need to be aware of the fact that your unique situation, as well as the actions you want the attorney to be able to take on your behalf, will help determine the most effective arrangement.
For instance, some people have specific wishes, whether based on religion or personal preference, about how they should be cared for at the end of their life. Oftentimes, people who are at the end of their lives become unable to express their wishes. Consequently, it becomes necessary to have somebody else who knows what they would want, and has the legal authority to give effect to those wishes.
Usually, you can find forms in Algona, Iowa that let you easily draft a power of attorney document. However, if a considerable amount of money is at stake, or you wish to grant very specific and limited powers, you should probably consult with a lawyer beforehand.
Types of Power of Attorney Arrangements in Algona, Iowa
There are 3 general arrangements that power of attorney can involve in Algona, Iowa. They are:
1. Limited power of attorney - this is probably the most limited type of power of attorney. It lets someone act on your behalf in a single instance. It is used most frequently in large sales transactions involving a written contract. If the closing of the deal is set to take place far away from where one of the parties is located, they can give limited power of attorney to someone who is closer. All you have to do is give that person the authority to act on your behalf in this one transaction. This authority automatically expires once the deal is finished.
2. Durable power of attorney - unlike limited power of attorney, discussed above, this does not automatically expire, though the principal can end it at any time. It is typically not limited to a single transaction, either. Rather, it covers a broader subject matter, though it still has limits. For example, you could give someone durable power of attorney to make medical decisions for you, but they would only be permitted to act in that context.
3. Springing power of attorney - under this arrangement, the attorney-in-fact does not get power of attorney until the happening of some stated event. The specified event is typically the incapacity or disability of the principal, though it can be virtually any event you wish. You should be aware, however, that it is not always clear when the principal has become sufficiently "disabled" for the power of attorney to take effect. This question sometimes has to be determined by a court, which can be costly and time-consuming.
Can a Algona, Iowa Lawyer Help?
Setting up a power of attorney arrangement in Algona, Iowa can be easy, but it can also be very intricate. It just depends on what you're trying to do. However, if you are at all unsure about how to proceed, it would probably be a good idea to have an attorney draft the agreement for you.