The idea behind the power of attorney is relatively simple in that it allows any capable adult the ability to give another person or organization the ability to make choices on his or her behalf.

1. “When people create powers of attorney, they do so in
order to allow one or more agents the ability to
represent them and their interests.”
COMMON QUESTIONS
ABOUT NORTH CAROLINA
POWERS OF ATTORNEY
PART 2
CHERYL K. DAVID
North Carolina Estate Planning and Elder Law Attorney

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Last week we looked at several commonly asked questions that many
people have about powers of
attorney. This week we wanted
to focus on some more practical
issues that surround powers of
attorney that we didn't directly
address in our last discussion.
Whenever we talk about legal
issues such as powers of
attorney, estate planning, or
anything else, it's important to
remember that nothing we say
or write will ever be a
substitute for the personalized
advice we can give you by
sitting down and discussing
your concerns. Always make
sure you ask us any questions
you have and speak to us whenever you need legal advice about powers of
attorney, or anything else.

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PRACTICAL USE OF POA
When people create powers of attorney, they do so in order to allow one or
more agents the ability to represent them and their interests. But how does
this take place?
The process is fairly simple. When a principal decides to create a power of
attorney, he or she creates a document that has to meet some basic state
legal standards. The document will, at the very least, name the person who
is to serve as agents, detail the agent's powers, and prove that the principal
is creating the documents by including a signature section, and typically a
notarization by a public notary.

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Once created and given to the agent, the power of attorney document is
then typically sufficient to allow third parties to recognize the agent's
authority.
So, for example, should the agent want to interact with a bank or financial
institution on the principal's behalf, the agent will typically have to present
the power of attorney document to the third-party first. In some situations
third parties may have their own requirements, such as requiring that a
power of attorney document have been drafted within the previous six
months. If this is the case, it is in the principal's best interest to first
determine what, if any, requirements the third parties have about powers of
attorney, and craft powers of attorney that meet those additional
impositions.

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REPRESENTATIVES, AGENTS, AND EXECUTORS
When people create a power of attorney and appoint an agent, they often
assume that the agent they appoint can serve as their estate representative
after they die. An estate representative, also known as a personal
representative, estate administrator, or executor, is responsible for
managing your estate through the probate process, and ensuring that your
wishes are honored after you have passed away. While it is true that the
same person who serves as your agent under a power of attorney can serve
as your executor throughout the probate process, you cannot accomplish
this simply by creating a power of attorney document.
An agent's authority under a power of attorney automatically ends when the
principal dies. So, if you want your agent to serve as your estate
representative, you have to use other tools. Specifically, you have to appoint
someone through a validly created last will and testament. As long as a

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court determines that your will meets all state legal standards, it will
appoint the person you choose as your executor.
Of course, this might seem unnecessarily tedious or cumbersome to many
people, as creating two documents to serve the same basic purpose might
seem redundant. Regardless, this is how the law works, and it is what you
must do in order to ensure that your wishes are protected. This is one of the
many reasons why talking to an attorney about your desires before you craft
a power of attorney or any other estate planning document is absolutely
essential.

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CREATING THE POA YOU NEED
The idea behind the
power of attorney is
relatively simple in that
it allows any capable
adult the ability to give
another person or
organization the ability
to make choices on his
or her behalf. Powers of
attorney allow you to
appoint agents or representatives that can represent your interests as much
or as little as you desire. By delegating this authority to others, it gives you
more options than you would have if you don't create powers of attorney.
But determining you might want to make a power of attorney, or that such
a document might be useful to you, is only the first step in the process. The
next step is to talk to a lawyer to discuss your options when it comes to
creating the power of attorney document that fits you and your
circumstances. No two powers of attorney can ever be identical, as they
serve different people in different situations. Creating the right POA for you
and your situation is a process that begins once you schedule an
appointment to come speak to us.

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ABOUT THE AUTHOR
Cheryl David is a graduate of UNC-Chapel Hill, the
University of Baltimore School of Law, and the
prestigious Trial Lawyer’s College presided over by
Gerry Spence. A former Administrative Judge, Cheryl
is certified as an Estate Planning Law Specialist by the
ABA accredited Estate Law Specialists Board, Inc. She
is also a member of the American Academy of Estate
Planning Attorneys, Medicaid Practice Systems and
the National Academy of Elder Law Attorneys.
In 2008, Cheryl received the honor of becoming a Fellow with the American
Academy of Estate Planning Attorneys. The Fellow program recognizes Academy
Members who demonstrate advanced expertise and significant practical
experience in the total estate planning, trust, tax planning, guardianship, probate
and estate administration fields. In order to maintain this advanced expertise,
Cheryl takes over 36 hours of continuing education in Estate Planning, Elder Law,
and Taxation each year. Also a Financial Planner, she holds the Series 7 and 66
Investment Licenses in addition to both Insurance and Long Term Care/Medicare
designations.
Her professional capabilities, together with over 25 years in practice, have
combined to bring positive change to the lives of over 4500 clients and their
families.
528 College Road
Greensboro, NC 27410
Phone: (336) 547-9999
Fax: (336) 547-9477
WWW.CHERYLDAVID.COM