3 Major Mistakes to Avoid When Drafting a Power of Attorney

 Posted on October 15,2024 in Estate Planning

Power of attorney is a legal tool that allows a person to grant someone else authority to act or make decisions on his or her behalf. Whether it is for financial matters or health matters, an individual — referred to as the principal — can appoint an agent to carry out certain tasks.

There are various powers of attorney that serve different purposes. A medical power of attorney, for instance, allows an agent to make decisions about the principal’s health. A springing power of attorney is triggered by certain times or events and only then takes effect. The provisions for any power of attorney, including the agent’s appointment, should be carefully laid out in a document prepared by a Texas estate planning lawyer.

If it is not drafted correctly, however, a power of attorney can be ineffective at best and dangerous at worst. Here are three major mistakes to avoid when creating a power of attorney.

Choosing the Wrong Agent

Making sure you appoint the right agent is a critical part of ensuring your needs are met correctly. Choosing an agent that is not sufficiently loyal to you can result in a breach of fiduciary duty, which means he or she may not act in your best interests. Even a loyal agent may be ineffective if he or she does not fully understand the instructions and how power of attorney works. In some cases, your health may be in this person’s hands, so choose carefully.

Defining the Powers Imprecisely

Another common mistake principals make is incorrectly defining the powers they grant their agents. If you define them too specifically, you may not leave room for the agent to make decisions when contingencies arise. If you define them too broadly, you may end up granting the agent too much authority. Avoid this mistake by hiring an experienced attorney who will draft the power of attorney document with precision.

Failing to Follow Legal Protocol

In addition to making sure the document is drafted correctly, there are also certain legal steps that need to be followed for the power of attorney to be valid. For example:

• You must sign the power of attorney in front of a notary public.
• If it is a medical power of attorney, you must sign the document in front of two witnesses.
• The witnesses cannot be related to you or named as beneficiaries in your will.

If the legal protocol is not followed correctly, the power of attorney may not be considered valid in the eyes of the law.

Contact a Dallas, TX Power of Attorney Lawyer

A skilled Dallas, TX estate planning attorney is key to properly executing an effective power of attorney. At Andrew Dunlap Attorneys, PLLC, we have over 45 years of experience and will use that to provide you with excellent, personalized legal services. Start creating a solid power of attorney today by calling 972-807-6357 now.