A statutory or financial power of attorney (POA) allows you to appoint an agent to conduct business for you. Depending on the type you need, a POA serves you when you are of sound mind but prefer someone else to conduct financial transactions or when you become mentally incapacitated.
Your agent can conduct banking business, manage investments, execute contracts on your behalf, buy or sell real estate, and collect rent. Contact our award-winning team at Begum Peláez-Prada PLLC to learn how a San Antonio financial power of attorney lawyer could memorialize your arrangement with a trusted financial agent.
A durable financial power of attorney generally takes effect when the principal becomes incapacitated but is set in place while the principal is mentally aware. It continues to be effective after a doctor diagnoses the principal as incapacitated and provides a written statement explaining the diagnosis.
Springing powers of attorney are also durable and take effect only if the principal becomes incapacitated. According to the Texas Estates Code § 751.00201, incapacitation means they are unable to manage their finances. The agent cannot make medical decisions for the principal, only a wide range of financial ones.
According to the EST § 751.131, there are several triggering factors that determine how long a durable financial POA lasts. They include:
A financial power of attorney lawyer in San Antonio could provide valuable guidance in creating and managing a durable financial POA to ensure it meets all legal requirements and serves the principal’s best interests.
A general financial power of attorney grants an agent the same, widely construed duties as a durable financial power of attorney. The difference is the general power extinguishes automatically when the principal becomes incapacitated. General powers are best used in business settings when an executive chooses a trusted employee to act on their behalf, such as executing contracts, overseeing a property sale, or purchasing a piece of art for a boss’s office. They are also beneficial for anyone who has the capacity to handle their finances but would rather not. They are not suitable for end-of-life estate planning because they are extinguished when the principal becomes incapacitated.
A limited or special financial power of attorney limits an agent to a specific financial activity during a specific time frame. A principal who is traveling for a month in Europe may use a limited POA for an agent to attend a pre-arranged closing on a piece of real estate. The lawyers at Begum Peláez-Prada PLLC could help clearly define the different financial powers of attorneys and discuss the needs of you and your business.
Financial powers of attorney offer a wide range of help when you need a surrogate for money and business matters. POAs come in many forms, from short-term agreements to those that last a lifetime, even if you become incapacitated.
If you have a need for a financial power of attorney or any estate or business documents, consult with our dedicated professionals. We pride ourselves at devoting the attention our clients deserve to help them meet their goals. Call Begum Peláez-Prada PLLC today to schedule your consultation with a San Antonio financial power of attorney lawyer.
