Michigan Power of Attorney: A Vital Part of an Estate Plan

In Michigan, a power of attorney document ensures that someone can take care of your financial and property matters when you can’t. While everyone wants to be in charge of their finances for the rest of their lives, circumstances arise that prevents this from happening. For some of us, an unexpected serious accident or medical event will immediately impact our ability to manage our affairs. Others will have advance warning of a medical condition on the horizon and the need for someone to be in charge their affairs. Ultimately, a power of attorney is part of any estate plan-offering peace of mind by ensuring your plan is in place before the need arises.

What is a Power of Attorney?

Michigan has enacted the Uniform Power of Attorney Act which allows you to name a person as your power of attorney “agent” to manage your financial and property matters while you are alive. The power of attorney document can grant broad authority for the person to make financial and property decisions or can grant a more limited authority for specific matters to accomplish. In either case, the authority given is considerable so selecting the right person as your agent will determine how effective the document will be. The power of attorney’s grant of authority to make decisions on your behalf can be made effective upon signing the document or at such time you lack the mental capacity to make informed decisions.

Considerations for Choosing a Power of Attorney Agent.

• Trustworthy. One of the most important considerations when choosing a person as your agent is naming someone who you trust and who will have your best interest in mind when making decisions.
• Responsible. It is also important to name someone who is responsible. For example, someone who is responsible with their finances and organized may be a better choice than someone who is financially irresponsible.
• Agreeable to Take on Duties. It is essential that you discuss the duties with the person you are considering as your agent and determine that he or she is agreeable to taking on the duties when necessary. In addition, they should understand that they must make decisions with your best interests in mind.
• Backup Agent. If possible, name a backup agent in case your first choice in unable to serve as your agent for any reason.
• Family Members. Inform your family members about your power of attorney and the named agent and any named successor agent so that there are no misunderstandings about who should make decisions on your behalf if it becomes necessary.

Mistakes to Avoid

• Not Updating Your Power of Attorney. Failing to review your power of attorney to make updates after major life events may leave you with an out-of-date document. Major life events include divorce, death, medical condition or other important changes in your life or your named agents.
• Not Remembering that a Power of Attorney Ends at Death. A Power of Attorney is effective only when you are alive. Upon death it has no legal authority.

Schedule a Free Consultation

A power of attorney to manage your finances and property while you are alive is a critical part of an estate plan however it cannot replace a last will and testament or a trust for managing and distributing your assets after death. Attorney Bill Ager helps individuals and families with all aspects of estate planning, including Durable Power of Attorneys, Last Wills and Testaments, Revocable Living Trusts, Patient Advocate Designations and Enhanced Life Estate Deeds/Lady Bird Deeds. From his Ann Arbor office, Bill serves clients throughout Washtenaw County. To schedule a free consultation to discuss a Durable Power of Attorney and an estate plan specifically tailored to your needs or for updating your existing plan, call (734) 649-0784, send an email to bill@agerlawoffice.com, or use the online contact form on this website.