As a parent of school-aged children or a real estate investor in Florida, understanding the power of attorney (POA) is crucial. This legal document grants someone else the authority to act on your behalf in legal or financial matters. At LCO Law, we prioritize your peace of mind by clarifying complex legal concepts. Here, we break down four critical functions a POA can perform and four it can’t.
What a Power of Attorney Can Do
Manage Financial Affairs: A POA can handle your financial transactions, including paying bills, managing investments, or buying and selling real estate, which is particularly useful for investors.
Handle Business Operations: For real estate investors, a POA can be invaluable in managing business affairs, from signing contracts to overseeing transactions.
Guardianship Decisions: Parents can use a POA to outline who will make decisions about their children’s welfare if they’re unable to do so.
Tax Matters: Filing taxes or handling disputes with the IRS can be managed through a POA, ensuring compliance and efficiency.
What a Power of Attorney Cannot Do
Make Healthcare Decisions: In cases where you’re unable to make decisions, a POA cannot step in to make healthcare choices on your behalf, different legal agreements are required to authorize others to make medical decisions for you.
Override Your Decisions: As long as you’re capable, your decisions stand. A POA doesn’t allow someone to overrule your choices.
Illegal Actions: A POA cannot be used to perform illegal acts. It’s bound by the law, regardless of the document’s specifications.
Last Beyond Your Lifetime: Upon your passing, the POA becomes invalid. Estate planning then follows your will or trust.
Florida’s Unique Legal Landscape
In Florida, POAs are governed by specific statutes. For instance, a Durable Power of Attorney remains effective even if you become incapacitated. This is particularly important for real estate investors and parents, ensuring continuous management of your affairs.
Real-Life Application:
Consider John, a real estate investor in Tampa. He used a POA to allow his partner to handle transactions when he was overseas. This flexibility is a boon for investors with global interests.
Or take Sarah, a single mother in Miami. She designated her sister through a POA to make educational decisions for her son while she recovered from surgery. This ensured continuity in her child’s life.
Understanding the power of attorney is essential for proactive planning, whether you’re safeguarding your children’s future or managing real estate investments. If you’re in Florida and need guidance, LCO Law is here to help. We provide tailored solutions that protect your interests and those of your loved ones.
Contact us today at 813-480-2106 to ensure your legal and financial affairs are in capable hands.