When do you need a Durable Power of Attorney Form?
There are numerous available legal forms you might need as a small business owner in the US. Most notably, it would be best if you include a durable power of attorney form in your options. This form can save your business, especially when you cannot take care of business litigations.
Durable Power of Attorney Vs. Power of Attorney
A power of attorney (POA) is simply a document in which you as the principal designate someone to act on your behalf. The person acting on your behalf is, in fact, the attorney. Your Attorney gets the authority to act for you in all the situations. A good illustration is in a real estate transaction where the power of attorney is given to the real estate agent. The real estate agent will act for the homeowner or consumer to sign legal documents relating to the transaction.
Termination of power of attorney occurs at different circumstances. It is prudent to note that the death of the principal revokes the power of attorney. Additionally, the power of the attorney may end if a person becomes mentally unstable.
A durable power of attorney is a specific type of power of attorney to allow the agent to continue in the situation of mental incompetence. Mental incompetence is simply a legal term meaning the principal is not in a position to make or implement decisions pertaining to his personal affairs. A good example would be dementia. Creation of a variety of durable power of attorney forms arises in different circumstances as long as they are not overlapping.
At what instance does the Durable Power of Attorney Take Effect?
The two kinds of durable powers of attorney ascend when the durable power of attorney is in effect. Additionally, these two types of durable powers of attorney are the same circumstances as with the regular power of attorney forms.
One category of the durable powers of attorney is the springing durable POA. This type bounces into action. Hence, it becomes effective when the person has incapacitation. While some states acknowledge the springing, durable POA’s some states like Florida do not acknowledge them. The other category is a regular durable POA taking effect after signing of the document. The attorney still has legitimate authority until the principal becomes mentally incompetent.
Durable Power of Attorney for Small Business Owner
Taking precautions is advisable at all costs. You should have a separate durable power of attorney that designates someone to handle your business activities if you are not well capable of handling it. In the case of incapacitation, the creation of limited durable power of attorney for legal and financial matters will save your firm.
For instance, if you happen to be the sole owner of a limited liability company (SMLLC), the durable power of attorney would offer a specific attorney-in-fact the expertise to handle the day-to-day activities of your business.
Items available in the durable power attorney form
Below are some of the general sections that must be present in a durable power of attorney form.
Specific identification of the two parties should be in a list -that is the principal and the attorney-in-fact. This will ensure there are no confusions in which these people are. You should include the relationship between you as the principal and your attorney-in-fact.
You should describe the limits of the POA in terms of time including the date of expiration and type of POA. This is a great opportunity to specify whether the POA is for business matters, general matters, or medical matters. You should also clearly state what the POA does not include.
You should also include in your statement that upon the improvement of your mental situation and you gain competency once more the POA expires. A good example is a recovery from brain injury.
Make sure you include the specific instructions for your attorney-in-fact. You could for example state who is in charge of a business or medical matters. Name these people and be specific in your guidelines. Ensure to it no contradictions occur between a medical durable POA and a living will.
When signing the form, two witnesses should be present. These witnesses should not be relatives and should be over 18.
How to Get Help with a Durable Power of Attorney Form
You should avoid at all costs from creating a durable POA yourself or using the free online form. It has never been a good idea to use online legal forms.
To create a durable power of attorney, get the help of an attorney. This will go a long way in making certain you follow the state law. In addition to that, there will be proper addressing of all situations at hand. A good choice would be an estate-planning attorney or elder law attorney might be a good choice.
You will find that each situation is unique and laws are prone to change. Therefore, you should get an attorney to assist in the preparation of the durable power of attorney.
