Granting a power of attorney requires a great deal of trust, and you may feel apprehensive about the legal and financial consequences of giving it. However, sometimes you must rely on others to perform important tasks for you because you are too far away or incapable of acting on your own.
If you are unsure about the details of granting power of attorney, an experienced Moorestown power of attorney lawyer might be able to answer your questions and clear up any misconceptions. Talking to a knowledgeable trust and estates lawyer could be the best way to clear up any misunderstandings and proceed confidently with this often-complex process.
Power of Attorney Formalities
Those with power of attorney are called agents, and the grantor is called the principal. When the grantor of power of attorney allows an agent to act on their behalf, the agent is often referred to as the attorney-in-fact.
Under New Jersey Revised Statutes §46:2B-8.9, a principal must memorialize their granting of power of attorney in a written document which they then sign in the presence of witnesses. This legal document must also be properly acknowledged and generally notarized.
Some common examples of assignments for agents include paying creditors and taxes, buying and selling real estate, banking, or managing investments and finances. A knowledgeable Moorestown power of attorney lawyer could elaborate upon other typical duties agents may be expected to fulfill.
Power of Attorney Agents in Moorestown
An attorney-in-fact can be authorized to perform limited tasks on behalf of a principal during the time period laid out in the power of attorney document. According to N.J.R.S. §46:2B-8.13, an agent with a power of attorney has fiduciary duties of loyalty and due care to the principal.
By law, Moorestown agents may be asked to provide an accounting of any funds that they have accessed or received while acting within their capacity as an attorney-in-fact. They are also required to maintain books or electronic records of financial transactions.
Durable Power of Attorney in Moorestown
A durable power of attorney differs from the standard version in that it may endure long after the principal has lost their capacity to make cogent decisions. Accordingly, a durable power of attorney may include language indicating it should not go into effect until the principal is suffering from diminished capacity.
More specifically, written documents that grant a durable power of attorney generally have particular language such as “this power shall not be affected by subsequent disability or incapacity.” They may be limited to a certain time, or the grant may allow the agent to act immediately and continue to do so until the principal’s death. A power of attorney lawyer in Moorestown could help draft such a document to ensure it is legally enforceable and meets the grantor’s desires.
Speak with Moorestown Counsel about a Power of Attorney
If you are unsure about signing over power of attorney, it may be prudent to speak with a legal representative. Meeting with a Moorestown power of attorney lawyer may clear up any questions and concerns you have about these documents and how an appointed representative could administer your trusts or business when you cannot.
It can be hard to trust others to act on your behalf, especially if you are unclear on the laws in Moorestown regarding this power. Call today to set up a consultation and learn more about your options.