Not all Power of Attorneys are created equal

Power of Attorneys (POA) are useful documents to have when you can no longer make financial and medical decisions. The problem is that most documents are not prepared correctly or the verbiage does not fit the situation.

For example: does your financial (Durable) Power of Attorney allow you to create a Trust? Does it allow you to gift to yourself or others? Apply for Medicaid or Estate Planning? And many other complications.

Last week I met a young lady that needed help for her mother. She was so happy because she thought she had covered all her bases. She had the correct POA for Health Care, Mental Health and Living Will (http://www.azag.gov/life_care/POA_HealthCare.pdf). But she had taken a Durable POA from the web (one page document) and because the one paragraph stated it covered everything she thought it meant everything.

Well, the bank we went to to get an Income Only Trust read it and said, "this does not give you the power to open or create a Trust; you need to have your mother sign one giving you permission". Except, her mother is no longer capable of signing any document and in order to qualify for State assistance this trust was needed. We were able to resolve the issue but sometimes things can go in a different direction such as needing a Guardianship/Conservator ship which is an expense that could be avoided.

Please do not go to the Web to pick a legal document that is so important. Get professional help, make sure your document is clear about your powers.