Get a Power of Attorney
Prepare for the Unexpected Before Someone Else Has to Make Difficult Decisions
Estate planning is not only about deciding what happens after death. It also addresses what could happen during your lifetime if an illness, injury or other circumstance leaves you unable to manage financial or legal matters independently.
A properly prepared power of attorney allows you to choose a trusted person to act on your behalf and define the authority that person may exercise. Without advance planning, the people closest to you may not automatically have the legal authority they need to access accounts, manage property, sign documents or communicate with financial institutions.
The Law Office of Dawn Trainor-Fogleman offers personalized, mobile power of attorney planning throughout Maryland and Washington, D.C., including Frederick, Damascus, Urbana, Hagerstown, Germantown, Gaithersburg, Rockville, Silver Spring, Olney, Bethesda, Columbia and Ellicott City.
What Does a Financial Power of Attorney Do in Maryland?
A financial power of attorney is a legal document through which one person, called the principal, authorizes another person, called the agent, to act on the principal’s behalf.
The document may provide broad authority or limit the agent to certain transactions. Depending on how the document is written, the agent may be authorized to manage bank accounts, pay expenses, handle real estate, communicate with insurance companies, address tax matters or complete other financial and legal tasks.
Maryland provides statutory forms for personal financial and limited powers of attorney, but the planning decision should still consider which powers are appropriate, who should receive them and whether any limitations or special instructions are needed.
What We Commonly See Leading Families to Consider a Power of Attorney
People usually begin thinking about a power of attorney because someone needs help now, a major life transition is approaching or the family has realized that no one has clear authority to act during an emergency.
“I am helping my aging parents manage more of their affairs.”
Adult children may begin helping with bills, insurance questions, property maintenance or financial accounts, but informal assistance does not necessarily provide legal authority to act.
Planning response: A parent who still has the required capacity may choose an agent and define the authority that person should have before additional assistance becomes necessary.
“My spouse handles all of our finances.”
Marriage does not always give one spouse unrestricted authority to manage property, sign financial documents or access individually held accounts for the other spouse.
Planning response: Each spouse can create a separate power of attorney and name an agent and backup agent who can act when needed.
“I am having surgery or beginning medical treatment.”
A planned procedure or period of treatment often prompts people to consider who could handle bills, account questions or other practical matters during recovery.
Planning response: A financial power of attorney can provide appropriate authority while an advance directive addresses healthcare decision-making.
“I own a business, and too much depends on me.”
Business owners may be the only people authorized to complete certain financial, contractual or administrative tasks. An unexpected absence can interrupt both business and family finances.
Planning response: A coordinated plan can identify who may handle designated personal or business matters and how that authority relates to existing business documents.
“My child recently turned 18 or is leaving for college.”
Once a child becomes a legal adult, parents may no longer have automatic access to financial, educational or medical information simply because they are the parents.
Planning response: The young adult may choose to create financial and healthcare documents naming trusted people who can help if assistance is needed.
“We completed wills but never planned for incapacity.”
A will generally operates after death. It does not give another person authority to manage financial matters while the person who created it is still living.
Planning response: Add a durable financial power of attorney and appropriate healthcare planning documents to create a more complete lifetime plan.
Different Powers of Attorney Serve Different Purposes
The appropriate document depends on whether continuing or limited authority is needed and what responsibilities the agent should be able to perform.
Durable Financial Power of Attorney
A durable power of attorney is designed to continue even if the principal later becomes disabled, incompetent or incapacitated, unless the document provides otherwise.
Limited Power of Attorney
A limited power of attorney gives an agent authority for specific matters, transactions or a defined period rather than granting broad financial authority.
Healthcare Decision Documents
Healthcare decisions are generally addressed through an advance directive or healthcare power of attorney naming a healthcare agent.
Financial and healthcare authority are not necessarily the same. A person named to manage money or property is not automatically the person authorized to make medical decisions. Those responsibilities should be addressed through the appropriate documents.
How Broadly Should Your Agent Be Allowed to Act?
A power of attorney should not grant more or less authority simply because one standard form is convenient. The document should reflect the purpose of the appointment and the level of responsibility the agent may need.
What Might an Agent Be Authorized to Handle?
The exact authority depends on the document. Not every agent should be granted every available power.
Banking
Accessing accounts, paying bills and addressing routine transactions.
Real Estate
Managing, maintaining, buying, selling or signing documents involving property.
Taxes
Working with tax professionals and handling designated tax matters.
Insurance
Communicating with insurers and managing covered policy matters.
Investments
Managing securities or investment accounts within the granted authority.
Retirement Benefits
Addressing certain retirement, pension or benefits-related responsibilities.
Claims and Contracts
Handling designated claims, agreements or contractual obligations.
Digital and Business Matters
Managing specified business, administrative or digital responsibilities.
The Right Agent Is Not Always the Most Obvious Person
Many people automatically name a spouse or oldest child without considering whether that person is prepared to manage financial responsibilities, communicate with family members or make difficult decisions under pressure.
The agent should understand that the authority is a serious fiduciary responsibility. The person should be willing, trustworthy and capable of acting according to the principal’s interests rather than personal preference.
Why Waiting Can Leave Families With Fewer Options
Families sometimes wait to discuss a power of attorney until someone has experienced a serious medical event or significant cognitive decline. By that point, the person may no longer have the legal capacity required to execute the document.
When no valid authority is available and the person cannot manage personal or financial needs, the family may need to explore a court-supervised guardianship. Maryland courts recognize powers of attorney and other advance-planning arrangements as potential alternatives to guardianship when they are created in time.
Planning earlier allows the individual—not a court or family dispute—to choose the person who should act and define the authority that person should have.
Power of Attorney Planning That Comes to You
Traveling to a traditional law office is not always practical for busy families, caregivers, older adults or people facing medical limitations. Dawn provides mobile estate planning consultations so clients can discuss important decisions in a more convenient setting.
Serving clients throughout Maryland and Washington, D.C., including Hagerstown, Frederick, Damascus, Urbana, Germantown, Gaithersburg, Rockville, Silver Spring, Olney, Bethesda, Columbia and Ellicott City.
Schedule a Consultation View the Documents ChecklistFrequently Asked Questions About Powers of Attorney in Maryland
Does a power of attorney remain valid if I become incapacitated?
A durable power of attorney is designed to continue if the principal later becomes disabled, incompetent or incapacitated. The specific document should be reviewed to confirm when it becomes effective and whether it contains any limitations or termination provisions.
Does my spouse automatically have power of attorney for me?
Marriage does not automatically give one spouse unrestricted legal authority over every account, property interest or financial decision belonging to the other spouse. Each spouse should consider creating separate estate planning documents.
Can I name more than one agent?
A document may name more than one person or designate a successor, but requiring multiple people to act together can create practical complications. The structure should reflect the family’s needs and how efficiently decisions may need to be made.
Can I limit what my agent is allowed to do?
Yes. A power of attorney may grant broad financial authority or restrict the agent to particular matters, transactions or periods. The document should clearly identify the authority being granted.
Can I revoke a power of attorney?
A principal who has the required capacity may generally revoke a power of attorney. Revocation should be properly documented, and relevant agents, institutions and other parties may need to receive notice.
Does a financial power of attorney allow someone to make medical decisions?
Not necessarily. Medical decision-making is generally addressed through an advance directive or healthcare power of attorney naming a healthcare agent. Financial and healthcare authority should be coordinated but may be given to different people.
What happens to the power of attorney when I die?
An agent’s authority under a power of attorney generally ends when the principal dies. Responsibility for administering the deceased person’s estate then passes to the appropriate personal representative or other authorized party.
Should my adult child have a power of attorney before leaving for college?
An adult child may choose to authorize a parent or another trusted person to help with certain financial or healthcare matters. The documents should reflect the young adult’s wishes and the level of authority they are comfortable granting.
A Power of Attorney Should Work With Your Other Planning Documents
Financial authority is only one part of a complete estate plan. Your will, healthcare documents, beneficiary designations and any trust planning should be reviewed together so that each document serves the intended purpose.