POWER OF ATTORNEY
A Power of Attorney allows you, the principal, to appoint someone, the agent, to act on your behalf in certain matters. You may allow the designated person to manage your finances, your assets, or your healthcare decisions according to your wishes. At Tsang & Associates, we have a long history of assisting clients in drafting all of their Power of Attorney document needs. Our attorneys will assess your circumstances and assist you in drafting a comprehensive Power of Attorney document by walking you through each step. Consultations are free and we look forward to speaking with you.
We will prepare a comprehensive Power of Attorney document along with forms and supporting documents, including:
- Providing free consultation to help determine what powers to be bestowed upon your agent
- Explanations of the Document in Detail
- Notary Service
In short, we provide a start to finish service. Your case is safe with us until the case is complete.
$500 per document/contract drafted
*Legal Fees vary based on complexity of each case, and the above quoted price represents the amount we charge for a typical case.
The three types of power of attorney--nondurable, durable, and springing--as elaborated upon below. The principal can set the limits of their agent's power, granting as much or as little power as is appropriate. When deciding whether to set limits, consider the kind of tasks the agent will likely be asked to perform, such as:
- Paying bills;
- Paying taxes;
- Choosing the principal's medical procedures in the event of incapacitation;
- Paying medical expenses;
- Managing real estate assets;
- Accessing financial accounts;
- Investing on principal's behalf;
- Collecting any retirement benefits;
- Transferring and selling assets;
- Buying insurance;
- Operating principal's small business;
- Hiring someone to represent the principal.
Nondurable Power of Attorney:
Nondurable power of attorney ceases when the principal becomes incapacitated. For example, the principal may grant their brother nondurable power of attorney over their finances, as he has just received his CPA and with tax season coming up, the principal feels that he is better qualified to deal with his/her money. However, if the principal gets into a car accident and is disabled in such a way that they cannot understand the gravity of the decisions they are making, they have thusly become incapacitated and the brother's nondurable power of attorney has therefore been terminated.
Durable Power of Attorney:
Durable power of attorney provides that the agent retains power of attorney whether or not the principal is incapacitated. For example, if the principal decides to grant their children durable power of attorney over his/her investments because he/she is aging and the children can make decisions with a clear head when he/she cannot, the children do not lose power of attorney even as the principal ages and becomes mentally incapable of knowing the gravity of his/her investment decisions. Durable power of attorney, then, continues even after the principal has been incapacitated.
Springing Power of Attorney:
Springing power of attorney is a form of durable power of attorney, which is activated only if the principal becomes incapacitated in a certain way, through certain circumstances. These circumstances are specified in the contract that grants springing power of attorney. For example, if the principal grants his wife springing power of attorney over his real estate assets and the contract signed specifically states that her springing power of attorney will become active if and only if the principal is in a coma, the wife's springing power of attorney is not active even if the principal gets into a car accident and has a mental handicap if he is still conscious afterwards. As the specific event mentioned in the contract has not come to pass, the wife's springing power of attorney is not active, and will not activate unless the principal falls into a coma.
TERMINATION OF POWER OF ATTORNEY
All three forms of power of attorney will be terminated in any one of the following events:
- The principal dies;
- The principal revokes the power of attorney before becoming incapacitated;
- The principal was married to their agent and then a divorce occurred;
- The court finds that the principal was incapacitated when he/she signed the contract.
Revocation of agent's power of attorney has four requirements:
- Principal must not be incapacitated;
- Principal must fill out and sign a Revocation of Power of Attorney with a new power of attorney;
- Principal must deliver the form to their agent;
- Principal must deliver the form to any relevant third parties, such as his/her hospital and insurance providers if granted power of attorney over medical expenses.
In order to provide you with the best and most accurate consultation, we recommend that you bring as many of the following information/documents as you can to ensure a productive meeting.
1. What, specifically, your agent will be in charge of
2. Which specific incapacitating event must occur in order to grant springing power of attorney (if any exists)
3. How long the agent shall retain their durable or springing power of attorney in the event of your incapacitation as the principal