But planning ahead prepares you as a responsible steward, even after death. Embrace the view that stewardship does not only exist while we are alive, but also includes how we allocate or manage our resources upon death.
Three important documents come into play when estate planning: advanced medical directives or medical power of attorney, the durable power of attorney, and a will. Perhaps the most commonly used and least understood document among those three are the power of attorney. The following are three common examples of misunderstanding regarding a power of attorney.
A very common experience is where children or a child is attempting to have a power of attorney prepared for their parent(s). Nobody can have a power of attorney prepared for their parent or loved one unless that person is of sound mind or has the capacity to have the document prepared. That means, the parent or loved one must not only provide consent, but be present and actively engaged in the creation, production and completion of the document. So, don’t wait until a family member’s capacity is questionable, or they are not quite lucid to create this. The power of attorney belongs to the loved one or family member. He or she must be in control of the process for the power of attorney to be effective.
Another misunderstanding is that the power of attorney is in effect after the principal is deceased. They operate under the power of attorney. When in fact no power exists. Upon the expiration of the person giving the power, it is the beginning of the executor of the person’s estate responsibilities.
Lastly, the power of attorney does not provide unlimited powers. If you are designated as the power of attorney for someone, it does not grant you the authority or right to change their will or other estate planning documents. Just think for a moment how that would work! Let’s say you created a Will and left your house to your child from your previous marriage, and then you became incapacitated and could no longer make decisions for yourself. Could your power of attorney now change your Will and leave the property to your stepchildren? Well fortunately, a power of attorney designee cannot alter, amend or otherwise change those documents.
Here is a story. One of my clients had a perfect power of attorney. The document was presented to the bank in order to gain access to her account to pay for medical bills. The bank refused to recognize the power of attorney. After almost two years of denial by the bank, I told the client’s daughter that we should pray and then visit her bank again. Her daughter’s response was “What’s the use?” We had done that before, but because I have seen God move in desperate and critical situations, I suggested to her we try Him one more time.
God showed up that day, and the new bank manager accepted the power of attorney and we were able to access the client’s resources and pay her medical bill. What do you do when there’s a power failure? You connect with the Source of all power!
