A Power of Attorney grants authority to an agent to act on behalf of the person who signs. Arizona law has strict requirements for proper estate planning powers of attorney. They must be notarized and witnessed by an impartial witness. The powers of the agent must be specifically spelled out in detail. The agent can then act on behalf of that person.
There are limitations to Powers of Attorney. They lapse upon death, so they cannot be used once the principal dies. They cannot be used to open bank accounts, now that we have the Patriot Act. And an agent under a Power of Attorney may not have the ease and flexibility that a Trustee would have under a Trust.
All adults in Arizona should have a Medical Power of Attorney and a Durable Financial Power of Attorney, designating an agent who can act for them if they become ill, incapacitated or are not able to act for themselves, either temporarily or permanently. These Powers of Attorney should be prepared by an able estate attorney to be safe.
