What Types of Power of Attorney Documents Can You Create in Massachusetts?

Responsible estate planning involves more than the disposition of assets upon your death. You should also have a strategy for transferring legal authority to someone you trust in the event that you are unable to make important decisions due to an illness, injury or absence. The simplest way to do this is through a power of attorney document. 

You have several options when creating a power of attorney, and a knowledgeable Massachusetts estate planning lawyer can draft a legal instrument tailored to your situation and needs. Some of the possibilities include the following:

• General power of attorney — By naming someone as your agent, you can give them the power to handle financial and legal matters, such as paying bills, managing bank accounts, filing taxes, collecting benefits or selling property. A general or financial power of attorney can be crafted broadly, or narrowly if you only want it to cover a specific transaction.

• Medical power of attorney — Commonly known as a healthcare proxy, this legal document designates someone to make decisions regarding your medical care if you cannot. A proxy can communicate what type of extraordinary treatments you want, and don’t want. You might also want to complete a HIPAA authorization so your agent is able to access your medical records.

In some circumstances, a principal will draft a limited power of attorney, giving their agent the authority to handle certain matters, or to act on the principal’s behalf for a specific period of time. You might do this if you’re going out of the country and will be difficult to reach. Sometimes, elderly people give a trusted family member the legal power to handle a real estate sale or complex financial transaction.

Many people execute “durable” power of attorney documents. This means the agent’s authority continues even when the principal becomes incapacitated. To ensure durability, the document should include explicit language declaring that the grant of authority remains in force even if the principal is unable to communicate due to illness or injury. Durable powers are particularly useful for financial planning because they avert the need for court-appointed guardianship.

A springing POA becomes effective only upon a specified event. Usually, the trigger is the principal’s incapacity. With this type of document, it is possible that a physician’s certification or court clarification might be required before a bank, hospital or other party accepts its validity. 

Chapdelaine, Ryan & Associates in Winthrop prepares personalized, enforceable power of attorney documents for Massachusetts clients based on their particular needs. Please call 617-870-6728 or contact us online for a consultation.