A power of attorney (POA) is a critical legal document that grants someone the authority to act on another person’s behalf in various matters, such as medical decisions, financial management, estate planning, and real estate transactions. However, even after creating this document, it is still critical to periodically review the POA, ideally every few years, to ensure it still aligns with your wishes and circumstances.
When Should You Update Your Power of Attorney?
There are various circumstances under which an individual may consider updating their power of attorney. These circumstances are unique to each person and can evolve over time due to changing life situations. However, some of the more common reasons that prompt individuals to update their power of attorney include the following:
Changes in a Person’s Life
Certain life changes are known to trigger a need to update a power of attorney. They include:
- An individual getting married
- An individual getting separated or divorced
- A child is grown and wants additional responsibility
- A property has been sold, or a new property has been acquired
- The individual with the POA has moved to another state, and the laws are different
There Are Issues with the Representative
Individuals may also decide to change their power of attorney if they discover there are problems with the representative, such as:
- The agent becomes incapacitated
- The agent passes away
- The agent is in jail
- The agent gets too old or becomes unreliable
- There was a falling out with the agent
The Laws in the State Changed
It is crucial not to overlook the importance of regularly reviewing your power of attorney to ensure it remains effective. Legislative changes can occur over time, and staying informed about these changes is important. By periodically reviewing your power of attorney, you can identify any necessary updates or additional provisions required to keep it in line with the current laws and regulations, which will help prevent potential rejection in the future.
You Want To Change the Power Granted
Powers of attorney are often very flexible. As a result, depending on the circumstances, you may want to modify the powers granted to your agent while maintaining trust in their abilities. This flexibility allows you to tailor the scope of authority to better suit your needs.
Updating a Power of Attorney
When updating a power of attorney, it is important to document the changes in writing. Updating the power of attorney can be as simple as revoking the existing POA and creating a new one. However, if you are changing the appointed agent, you will need to notify them so they can cease any actions on your behalf.
If the reason for the change is due to a falling out or lack of trust, it is recommended to first execute the revocation and send it to any financial institutions or entities that have your existing power of attorney on file. After that, you should inform your previous agent of the change.
Contact Losavio & DeJean Today To Learn More
At Losavio & DeJean, we offer a complimentary phone consultation to new clients, allowing them to engage with our knowledgeable estate planning team. During this consultation, we can assist you in designating an individual to make important healthcare, medical, and financial decisions on your behalf. In addition, we can offer tailored recommendations on various estate planning services that may benefit your specific circumstances.
If you want to learn more about POAs and how our law firm can help with these legal documents, contact Losavio & DeJean, The Louisiana Elder Law Firm, today and speak with our experienced and dedicated legal team.