Sometimes, unexpected circumstances arise in our lives that leave us unable to take care of our own affairs. You may have an unanticipated medical issue like a stroke that lands you in the hospital, or experience an accident that requires multiple surgeries and leaves you incapacitated. In these situations, it can be difficult, if not impossible, to make medical or financial decisions. A power of attorney allows a trusted individual to act on your behalf in financial, legal, or medical matters if you become unavailable or incapacitated. When properly drafted, a power of attorney can help prevent confusion, reduce the risk of delay, and make it easier for loved ones to step in when needed.
For many Texans, a power of attorney is a critical part of a complete estate plan. It can help families avoid unnecessary court proceedings, provide continuity during a medical crisis, and ensure that someone with legal authority can handle important affairs.
At the Aldrich Law Firm, we help clients throughout Texas prepare, review, and update powers of attorney as part of a broader estate planning strategy. We also represent clients in disputes involving powers of attorney, including claims involving incapacity, undue influence, revocation, and financial abuse by an agent. Whether you are planning ahead or dealing with concerns about an existing document, it is important to understand how Texas powers of attorney work and to speak with a San Antonio power of attorney lawyer to learn more.
Understanding A Power of Attorney
A power of attorney is a legal document that you can use to designate another person with the authority to make decisions on your behalf. The powers granted may be broad or limited, depending on the language of the document and the principal’s goals.
The person who creates a power of attorney is known as the principal, and the person who is designated to make decisions on the principal’s behalf is the agent. Contrary to its name, an agent does not have to be an attorney themselves – they can be (and often are) your spouse, parent, sibling, or friend.
A Texas power of attorney can be used for many purposes. Depending on the type of document involved, an agent may be able to manage bank accounts, sign contracts, handle real estate matters, communicate with financial institutions, pay bills, manage business affairs, or make health care decisions. The authority given to the agent depends on the wording of the document and the applicable law.
Types of Powers of Attorney in Texas
Texas law recognizes several types of powers of attorney, but there are two main types: (1) statutory durable power of attorney and (2) medical power of attorney. The right document depends on the person’s circumstances, assets, health concerns, and long-term planning goals.
Statutory Durable Power of Attorney
A statutory durable power of attorney is commonly used for financial and legal matters. It allows an agent to act on behalf of the principal with respect to matters such as banking, property, taxes, contracts, investments, and other financial affairs.
The term “durable” generally means that the agent’s authority continues even if the principal later becomes incapacitated. This is one of the main reasons durable powers of attorney are so important. Without that feature, the document may become ineffective at the precise time it is most needed.
A statutory durable power of attorney is often one of the most important incapacity-planning documents in a Texas estate plan.
Medical Power of Attorney
A medical power of attorney allows an agent to make health care decisions for the principal under circumstances defined by Texas law, usually when the principal is unable to make those decisions personally.
This document can become extremely important during a hospitalization, serious illness, or medical emergency. It allows a trusted person to communicate with doctors and make treatment decisions when necessary. A medical power of attorney is often used together with other estate planning and incapacity-planning documents.
About HIPAA
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) protects your healthcare data and prevents healthcare companies from sharing information without your consent. But in emergency situations, this can also prevent important medical information from being shared with your family and loved ones. To avoid this problem, a Medical POA should always be accompanied by a HIPAA release that permits your doctors to speak with individuals you have identified in your POA, and other family members, and share information with them.
Power of Attorney Abuse in Texas
Unfortunately, powers of attorney are sometimes misused. An agent may exceed the authority granted by the document, use the power for personal gain, or act contrary to the principal’s best interests. In other situations, the document itself may have been procured through undue influence or signed when the principal lacked capacity.
Common issues in Texas power of attorney disputes include:
- Unauthorized withdrawals or transfers
- Self-dealing
- Improper gifting
- Misuse of bank accounts or other assets
- Concealment of financial records
- Coercion or undue influence
- Questions about the principal’s mental capacity
- Disputes concerning revocation or competing documents
These disputes may overlap with probate litigation, fiduciary litigation, or guardianship proceedings. In some cases, the consequences can continue even after the principal’s death.
FAQS
When does a Power of Attorney become active?
Most POAs are active immediately after they are signed and notarized. If you want a POA that only becomes active at a certain time or in a particular situation, you can create a springing POA that “springs” into effect when the particular time or condition is met. Note that POAs may be limited to grant certain specific powers.
Why should I hire an attorney instead of using an online POA form?
Creating a power of attorney gives your agent significant authority to make medical and financial decisions. For such an important role, you want to make sure that your POA is as detailed and accurate as possible. Depending on the circumstances, a San Antonio power of attorney lawyer can assist with the following:
- drafting durable powers of attorney
- drafting medical powers of attorney
- reviewing existing powers of attorney
- updating documents after major life changes
- advising clients about revocation issues
- handling disputes involving capacity or undue influence
- addressing suspected financial abuse by an agent
- related guardianship and probate litigation matters
Every family situation is different. The appropriate strategy depends on the client’s goals, the nature of the assets involved, and the degree of trust among the people who may be called upon to serve, which is why it’s important to work with an estate planning law firm.
Can I change or revoke my POA?
Yes. Our team can work with you to change or revoke your POA at any time as long as you have the mental capacity to do so. When a power of attorney should be revoked or replaced, it is important to do so carefully and in a way that reduces the risk of future confusion. Reach out to speak with a San Antonio power of attorney lawyer today to learn more about the process.
It’s Confidential: Speak with a San Antonio Power of Attorney Lawyer
A power of attorney can be one of the most useful documents in an estate plan, but only if it is properly drafted and entrusted to the right person. Whether you need help preparing a durable power of attorney, reviewing a medical power of attorney, revoking an outdated document, or addressing a dispute involving an agent’s conduct, experienced legal counsel can help.
If you need help with a power of attorney in Texas, contact our office to discuss your situation.
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