POWERS OF ATTORNEY – 2011 UPDATE      A variety of documents can be used by clients to establish management and distribution of their assets and things of value when they cannot (or choose not to) act on their own. Wills and testamentary trusts are used to distribute and manage assets (and address guardianship of minor children, the most valuable “asset” of some portfolios) upon one’s death – but those documents have no power while the person is alive. A power of attorney is a document that will direct management of a person’s assets and personal decisions while they are still alive; and, while they are relatively easy to prepare and complete, it is important to note that changes in the law must be monitored to ensure proper validity of the documents.      While one can use a document created specifically for a single use, many make use of the statutory documents approved by the state legislature. These documents were modified, effective July 1, 2011, so that the forms commonly used (and specifically included in the statutes as “statutory” powers of attorney) have been changed. As in the past, there are recommended forms for powers dealing with property, as well as powers dealing with health care.      A common question of some is “can I designate two people to serve as co-agents”. While the past forms included language against such in the actual documents, the amendments make it clear that using the statutory power of attorney forms PROHIBITS the use of co-agents. A proposed document for co-agents is included in the new statutes, but it appears that is to be used when the statutory forms are NOT used.      The property power of attorney includes the requirement of TWO witnesses (previously one) and a notary seal. It also includes a Notice to Agent document to ensure the agent is aware of his/her duties, as well as an introductory notice to the person executing the power, to ensure there is no doubt he/she is aware of the importance of this act.      The power of attorney for health care also includes an introductory “warning” paragraph, although NOT on a separate page, like the property power document. It also includes specific language for anatomical gifts upon death, as well as the standard choice of life-ending treatment options. However, a change in the description of these choices is included in the new legislation – between “my agent can weigh the burdens and benefits” and “keep me alive no matter what,” the middle choice now references a conclusion by the treating physician to not only coma situations but also incurable or irreversible conditions or terminal conditions.      Everyone – no matter their age – should strongly consider completing these types of documents. Even couples who own assets jointly and are familiar with one another’s wishes can find themselves in a situation where the other is unable to act, leaving family members or business partners with the need to seek formal guardianship in the event of an illness or accident which renders one unable to act on these types of matters. These documents comprise part of the whole “estate planning” arena, and our office is well versed in these areas – call for an appointment at your convenience to review your current estate documents or create new ones!

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