Reference no: EM133545123

Case Study: How prepared are you to deal with an unexpected accident or illness? A power of attorney (POA) is a vital estate planning document to have for many reasons. No one expects the unexpected to occur. Being prepared for an unfortunate event like an illness or accident by filling out a power of attorney sample can save unnecessary hardship and expenses for your loved ones in an already stressful situation. It can allow your bills to be paid, contracts to be signed, joint accounts to be accessed, and business affairs to continue without interruption. If you become incapacitated and don't have an appointed agent, then court involvement will be required. Court proceedings to appoint a guardian cost thousands of dollars. A power of attorney may also simply allow you to delegate tasks to others when it's more convenient or appropriate to do so.

A power of attorney can be general or limited, durable or nondurable, and can be effective for a limited time or take effect at a time or specified event in the future.

Questions: Answer the following question(s) and discuss among each other the best practices with respect to POA's.

• Define POA and list what legal authority can be granted with a Power of Attorney? What can it not be used for?
• We know the benefits of a POA, what are some disadvantages? Can it be abused? How so? Provide examples you have read about or have experience with.
• Given what you now know about POA's, under what circumstances would you use a POA? When would you stay away from using it?