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What
is a Power of Attorney?
- A "power of attorney" is a legal document by
which you (the "principal") give certain powers to someone else. This
person becomes your "attorney-in-fact" (the "agent"); authorized to
act for you, in your place.
- A "power of attorney" document specifies exactly
what powers you give to your attorney-in-fact. You can limit your
attorney-in-fact to very limited powers. For example, if you will be on vacation and
are selling your house, you can give someone (your attorney, for instance) the power to
sign the deed in your absence. Most "general durable powers of attorney,"
however, give your attorney-in-fact the power to do almost anything you could do.
What
does "durable" mean?
When does the Power of Attorney
start to work?
- The Power of Attorney is effective right away.
The only thing that keeps it from being used is that you don't have to give a copy to your
Attorney-in-Fact immediately, and if you do, you can tell your Attorney-in-Fact not to use
it unless you are unconscious or unable to act for yourself.
If
I give someone my Power of Attorney, does that mean I don't have any rights over my money
any more?
If
I give someone my Power of Attorney, does that mean that person can take all my money or
give it all away?
- If you give someone the key to your house, does that mean
that person can take the furniture? The answer, of course, is, "Yes, but that
does not make it legal to do so." Your Power of Attorney is as important as the
key to your house, or to your safety deposit box. You must give it only to someone
you trust.
If
I think someone is using my Power of Attorney to steal from me, what can I do?
- First, you should revoke the power of
attorney, and make sure that all financial institutions in which you have funds know
you have revoked it. Second, you can go to the probate court (by yourself, or
through an attorney) and demand that the person you suspect of stealing from you, file an
accounting showing what they did with the money. You will need a $100 filing fee
and may have to pay the person back for the cost of preparing the accounting. The
court will hold a hearing at which time you can challenge the information given in the
accounting. Ultimately, if it turns out that your money was taken, you can
bring suit in court or even press criminal charges.
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If I change
my mind, can I revoke my Power of Attorney?
- Connecticut law does not provide that a new power
of attorney necessarily revokes an old one.
- The power of attorney has no effect unless it is in the
possession of the individual named or has already been given to financial institutions,
etc. to indicate you want that person to act on your behalf. If you have not given
the document out, you can revoke it by destroying it and executing a new document.
Why
do Powers of Attorney look different? Why did my lawyer use a form that looks
different from the one I got in the stationary store?
- The "statutory" or "short form" power
of attorney is the common form Power of Attorney sold in Connecticut stores. The
document lists the powers given to the attorney-in-fact by letter, but the statute fills
in at length the detailed powers that are included. IMPORTANT: in the
statutory form, ALL the powers listed are included; you initial in the boxes only to
DELETE certain powers. The statutory form Power
of Attorney included in this web site links to the statutory provisions.
- Some attorneys prefer to use a "manuscripted" or
"long form" Power of Attorney. Your attorney may feel that you would
rather be able to read on the face of the document the powers you are conferring, instead
of having to look at the statute. They may also worry that someone in another state
would not be able to determine from the document whether or not it contains a particular
power. If you do execute a "statutory short form" Power of Attorney, it
would be wise to keep a copy of the statute handy. You can read the statute
here: Power of
Attorney Statute.
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I
have a Power of Attorney I signed in another state. Can I use it in Connecticut?
- Most powers of attorney signed in other statues will be
valid in Connecticut. In general, to use a power of attorney to convey title to real
estate, the power of attorney must be signed, dated, "acknowledged" (that is,
signed before a person authorized to take "acknowledgments," usually a notary
public or other court official, and with the signing party stating that it is his or her
"free act and deed" to sign it) and attested to (signed by) two witnesses, one
of whom may also be the notary or person taking the acknowledgment.
- The practical question is not whether the power of
attorney is valid, but whether a financial institution will feel comfortable honoring
it. Also, if the document refers to the statutes of another state, you may have to
prove what the statute said.
I'm
going to live in another state. Do I need to change my Power of Attorney?
- As noted above, the law may be different in your new
state. You should always consult a local attorney when you move to a new state to
see whether your old documents still "work" the way you intended.
Why do I need a Power of
Attorney if I'm feeling fine?
- A Power of Attorney can be an enormous convenience to you
and your family. If you were to become unable to handle your own affairs -- as a
result of illness, accident, or even absence -- the Power of Attorney gives your agent the
power to handle your affairs for you as you would want them to do. If you became
disabled by an accident, you might not be able to execute a Power of Attorney at that
time.
Where
should I keep my Power of Attorney?
- Your Power of Attorney is an important legal
document. Keep it in a safe and secure place if you want to retain control over when
and how it is used. It may make sense to keep a spare copy with your attorney just
in case one is lost.
I had a
Power of Attorney done already. Why do I need to do one again?
- There are no clear rules on when and if banks must accept
powers of attorney. From a practical standpoint, it is commonly reported that
financial institutions may refuse to honor a Power of Attorney executed years previously,
especially if the principal was competent during that time. The bank's concern is
that the document might have been revoked in the interim. Therefore, it is prudent
to re-execute your Power of Attorney every five years or so.
- It is always a good idea to review your estate planning
documents periodically to make sure you still agree with your choices.
- You may also want to review whether your Power of Attorney
includes provision for gifts, if you would like your Attorney-in-Fact to be able to make
gifts on your behalf, including charitable gifts. Your Power of Attorney is not
effective, in Connecticut, to make gifts of your property to third parties, unless the
document expressly says so. Other states may automatically include a moderate
"gifting power" in their statutory Powers of Attorney, but Connecticut's does
not. This web site includes two suggested provisions you
may want to use.
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