Louisville Power of Attorney Overview

Creating a power of attorney (POA) for different reasons is another powerful estate planning tool you should consider if you live in Kentucky. You never know when you’ll be in a situation where you’ll need someone else to step in to make important decisions or take legal actions on your behalf. If you don’t have this document when that time comes, it might be too late. A knowledgeable estate planning attorney can explain your options and execute the best strategy to achieve your goals.

What is a Power of Attorney?

A power of attorney is a legal document naming someone you choose as a party who has the legal authority to enter into business, legal, or medical contracts or transactions for you should you be unable to do so yourself. You should only give a power of attorney to someone you trust completely. This person will have complete control of your affairs according to the guidelines established in the legal document.

Not all powers of attorney are unlimited. For example, some might only go into effect if you become incapacitated. With others, you can grant limited powers, such as the power to handle a business or real estate transaction on your behalf while you are unavailable.

Different Types of Powers of Attorney in Kentucky

You can create several different types of POAs in Kentucky to strengthen your estate plan or accomplish your goals.

• General Power of Attorney — This largely gives blanket powers to the agent. Prior to 2018, a general POA would expire if the principal became incapacitated. Now, unless otherwise specified, it becomes durable.
• Durable Power of Attorney — All POAs in Kentucky are now considered durable unless otherwise specified. This means the POA does not expire when the principal becomes incapacitated.
• Limited (or Specific) Power of Attorney — This type of POA specifies which powers the agent has, so there are limits to what they are permitted to do on behalf of the principal.
• Springing Power of Attorney — This is a POA that only becomes effective when a certain event happens, such as the incapacitation of the principal.
• Medical Power of Attorney — A medical POA gives the agent the authority to make healthcare decisions for the principal upon that person’s incapacitation.

Why You Might Need a Power of Attorney

Powers of attorney are incredibly useful in estate planning. Having the right power of attorney in place can ensure you have a trusted person who will act for you when you can’t do so yourself. It would be a mistake to wait until you are older or have serious health issues before creating a durable power of attorney. You want this document in place as soon as possible. Once a person is declared physically or mentally incapacitated, they will no longer be able to create a power of attorney.

Requirements to Create a Power of Attorney in Kentucky

If you wish to have a legally valid POA in Kentucky, the document must meet certain requirements.

Mental Capacity to Create a POA

A person making a power of attorney in Kentucky must be of sound mind. The courts will generally interpret the meaning of this. However, you must be of sound mind when creating such a legal document.

Notarization of the Document

Kentucky doesn’t technically require that a POA be notarized. However, notarization for your POA is strongly recommended. When signing your POA in the presence of a notary, your signature is deemed to be genuine under Kentucky law. This can prevent issues where someone questions the validity of the contract. Also, many financial institutions will refuse to accept a POA that isn’t notarized because a lot of money could be at stake.

Kentucky law previously required that POAs have witness signatures from two disinterested parties. Since 2018, this is no longer a requirement. But if you anticipate any conflicts related to your POA, there’s nothing wrong with having witness signatures in addition to notarization to strengthen the legal document.

Deleting or Making Changes to a Power of Attorney

Once your POA has been created and is legally binding, you should keep it in a safe place where your agent and loved ones can access it if necessary. People’s circumstances can change over time. It’s important that you revisit these estate planning documents periodically to determine if they should be deleted or revised to reflect your current wishes.

Louisville Estate Planning Attorney is dedicated to providing people who are interested in securing their financial future with the information they need to make sound decisions. We can connect you with a Kentucky estate planning attorney that will offer knowledgeable guidance on wills, trusts, and other estate planning strategies.