What You Need to Know About Powers of Attorney in Texas

 Posted on November 21, 2022 in Estate Planning

The process of estate planning can be extremely difficult for some people, as it is certainly not enjoyable to confront one’s own mortality. Of course, none of us is going to live forever, and with a comprehensive estate plan, you can provide your family and loved ones with security and peace of mind that extends well beyond your lifetime.

Some estate planning elements can be set up to take effect during your lifetime, if necessary, so that you can ensure that your affairs will be properly managed. Among these are powers of attorney, and they are often forgotten about by people who are not familiar with how they work.

What Is a Power of Attorney?

A power of attorney is a legal document that gives someone else the authority to act on your behalf. In Texas, there are two primary types of power of attorney: general and limited. A general power of attorney gives the person you appoint (known as your "agent") broad powers to handle your affairs. A limited power of attorney, on the other hand, only gives your agent specific powers, such as the authority to sell your home or sign documents on your behalf.

A power of attorney can be an extremely useful tool, but it is important to choose your agent carefully. You should appoint someone you trust implicitly and who has the financial knowledge and ability to handle your affairs if necessary. Powers of attorney can be revoked at any time, so if you have any concerns about your agent's actions, you can always cancel the power of attorney.

The Different Types of Powers of Attorney

In Texas, there are several different subtypes of powers of attorney. A general durable power of attorney gives the agent broad powers to handle the principal's financial affairs. A special durable power of attorney is more limited in scope and only authorizes the agent to take specific actions on behalf of the principal (in this case, you). A limited power of attorney only authorizes the agent to take certain actions for a specific period of time. Finally, a springing power of attorney only takes effect under specific conditions, such as if the principal becomes incapacitated. Each type of power of attorney has its own advantages and disadvantages, so it is important to choose the one that best suits the needs of the principal.

Creating a Power of Attorney

If you wish to create a power of attorney, there are certain requirements that you must follow. The person you appoint as your agent must be 18 years old or older and must be competent to understand the duties and responsibilities of the role. You can name more than one agent, and you can specify whether they will act independently or together. You can also set an expiration date for the power of attorney or specify that it will remain in effect until you revoke it. To create a valid power of attorney in Texas, you must sign the document in front of a notary public. Once the power of attorney is complete, you should give a copy to your agent and keep one for yourself. It is also a good idea to provide copies to anyone who might need to know about your arrangement, such as your estate planning attorney and your bank.

Contact a Tarrant County Estate Planning Lawyer

For more information about powers of attorney, or to get help in creating one, contact an experienced Fort Worth estate planning lawyer with Gonzalez Law, PLLC. Call 817-349-7330 to get started with a free, confidential consultation today. Let us help you provide you and your loved ones with the peace of mind you deserve.

Source:

https://statutes.capitol.texas.gov/Docs/ES/htm/ES.752.htm