Most people associate estate planning with wills and trusts and assume it’s something they only need to think about later in life. However, one of the most important estate planning documents you can have isn’t about what happens after you die. It’s about what happens if you’re still alive but unable to make decisions for yourself.
A power of attorney allows you to choose someone you trust to step in and act on your behalf if you can’t. Without one, your family could be forced into a costly court process just to pay your bills or make medical decisions for you. At the end of the day, this is one of those documents that feels unnecessary right up until the moment it becomes critical.
What a Power of Attorney Actually Does
A power of attorney is a legal document that gives another person the authority to act on your behalf. The person granting the authority is called the “principal,” and the person receiving it is called the “agent.” You get to decide exactly how much authority your agent has, which can range from handling a single financial transaction to managing your entire estate.
The key advantage of a power of attorney is that it lets you stay in control. You choose who acts for you, when they can act, and what they’re allowed to do. Compare that with the alternative, where a court appoints someone for you, and the difference becomes clear.
Financial Power of Attorney
A financial power of attorney allows your agent to manage your financial affairs if you are unable to do so.
Depending on the authority you grant, your agent may be able to:
- Pay bills and other expenses
- Manage bank and investment accounts
- File tax returns
- Buy, sell, or manage property
- Handle other financial transactions on your behalf
Under Washington’s Uniform Power of Attorney Act, a financial power of attorney can grant broad authority across many areas of your financial life. However, certain actions that carry a greater risk of abuse require specific authorization in the document. For example, unless your power of attorney states otherwise, your agent’s authority to make gifts is limited to the federal annual gift tax exclusion amount.
Health Care Power of Attorney
A health care power of attorney authorizes your agent to make medical decisions on your behalf if you can’t communicate your own wishes. This can include consenting to treatment, choosing providers, and accessing your medical records under HIPAA.
Many people pair a health care power of attorney with a living will or advance directive. The living will is meant to spell out your treatment preferences in specific situations. Meanwhile, the power of attorney designates the person responsible for carrying out those preferences and making medical decisions when the directive does not address them.
Why the Word “Durable” Is Key
Under Washington law, a power of attorney is generally durable unless the document specifically states otherwise. This means your agent’s authority continues even if you become incapacitated, allowing someone you trust to manage your financial or legal affairs when you are unable to do so yourself.
A durable power of attorney can help your family avoid the time and expense of asking a court to appoint a guardian or conservator simply because you can no longer make decisions on your own. Without this protection, your loved ones may face unnecessary delays during an already difficult time.
Because powers of attorney can have significant legal consequences, it is important to work with an estate planning attorney to ensure your document accurately reflects your wishes and complies with Washington law.
What Washington Requires for a Valid Power of Attorney
All powers of attorney created in Washington State must comply with a set of legal rules.
Some of the most important requirements include:
- The document must be titled “Power of Attorney”
- It must be signed and dated by the principal
- The principal’s signature must be either notarized or witnessed by two competent, disinterested individuals
- Witnesses cannot be the principal’s home care providers, care providers at a long-term care facility, or relatives by blood or marriage
- To be durable, as discussed above, the document must expressly state that it survives the principal’s incapacity
Using an outdated template or pulling a generic form off the internet may result in a document that doesn’t meet these requirements. Working with a lawyer ensures that your power of attorney is valid and enforceable when it matters most.
Contact the Spokane Estate Planning Attorneys at Elevated Estate Planning, P.S. for Help Today
Creating a power of attorney is one of the simplest and most effective ways to protect yourself and your loved ones if the unexpected happens. Having the right documents in place can help your family avoid unnecessary delays, confusion, and costly court proceedings while ensuring someone you trust can act on your behalf.
At Elevated Estate Planning, P.S., our Spokane estate planning lawyers help individuals and families create customized powers of attorney and other essential estate planning documents that reflect their goals and comply with Washington law. Whether you are creating your first estate plan or updating existing documents, we can guide you through every step of the process.
Contact us today at (509) 328-2150 to schedule a consultation and learn how we can help protect your future.