How to Use a Power of Attorney

An estate plan should be comprehensive. It is about far more than setting up a will to determine who gets to inherit estate assets.  A comprehensive estate plan should also protect a person in the event that they are incapacitated. A Power of attorney (POA) is a key document that is typically included as part of the estate plan and avoids a guardianship proceeding should someone become incapacitated. This raises an important question: How do you use a power of attorney? The answer depends on the specific situation. At The Law Offices of Odelia Goldberg, we have extensive experience with a wide range of estate planning matters. Within this article, our Fort Lauderdale POA lawyer provides an overview of how to use a power of attorney in Florida. 

What is a Power of Attorney (POA)?

A power of attorney (POA) is a legal document that allows a person—referred to officially as the “principal”—to designate another trusted person—known as the “agent” or “attorney in fact”—to make decisions and act on their behalf. The authority can cover a range of pre-specific actions, including asset protection and financial and legal matters. In Florida, a POA takes effect immediately as Florida does not have a “springing” power of attorney statute. 

An Overview of the Three Main Types of Power of Attorney in Florida

In Florida, there are three main types of POA. You may set up one or more of the following: 

• Limited POA: A limited POA in Florida is tailored to allow the agent to perform specific duties or actions on behalf of the principal. It is often for a designated period of time, including for discrete transactions like selling property or managing certain financial assets.
• Durable POA: A durable POA in Florida remains effective even if the principal becomes incapacitated. It is designed to ensure that the agent can continue to make decisions without interruption. A durable POA is typically the best option for estate planning. 
• Super POA: A super POA is a durable POA where the Agent has the ability to change beneficiaries, establish a trust and amend legal documents on behalf of the Principal.  This gives the Agent “superpowers.”

Know the Law: Setting Up POA in Florida

POA is governed by state law. Under Florida’s POA laws (Florida Statutes § 709.2102), there are specific requirements that must be satisfied before power of attorney—whether limited or durable—is valid. Specifically, a POA should be: 

• Written; 
• Signed; 
• Notarized; and
• Witnessed by two people. 

An Overview of Ways in Which Power of Attorney Can Be Used in Florida

In Florida, power of attorney is a very useful, versatile estate planning tool. It can help empower a person to ensure that their personal, financial, and medical affairs can be managed according to their wishes—especially if a time comes in which they are unable to do so themselves. The scope of authority granted by a POA can be broad or limited, depending on the type chosen and the specific provisions included in the document. Here are notable ways that POA can be used: 

• Financial Management: A POA can be used to give an agent the authority to the full range of financial matters. Some of the key examples include things like managing bank accounts, making investments, handling transactions, and dealing with tax obligations. In other words, you can delegate your financial responsibilities to a trusted party.  
• Housing and Real Estate Transactions: An agent under a POA can buy, sell, or manage real estate on behalf of the principal. Through this power, a POA may pay bills, make real estate transactions, and even determine the living situation of the principal.  
• Legal Affairs: A POA can empower an agent to represent the principal in legal matters. It could include litigating, settling disputes, and managing other legal issues that may arise. A POA can act as your representative. They could also hire an attorney on your behalf. 

Ultimately, a POA can be crafted to meet the specific circumstances of a case. Notably, there is a limit on your ability to assign your power of attorney to other people. In Florida, you can appoint multiple people as your POA. However, when doing so, you should specify whether these agents must act jointly in making decisions or if each can act independently. 

A POA is Immediately Extinguished When the Principal Passes Away  

As valuable and important as it is, power of attorney is not, by itself, a comprehensive estate planning tool. It cannot be used to manage probate or make any decisions/transactions after the death of the principal. Indeed, in Florida, power of attorney is immediately extinguished when the principal, the person who granted the authority, passes away. The termination is because the POA is solely meant to enable decision-making on behalf of the living principal. Upon the principal’s death, the responsibility to manage the deceased’s affairs transitions to the personal representative of the estate—as specified in the will or appointed by the court. 

Contact Our Fort Lauderdale POA Lawyer Today

At The Law Offices of Odelia Goldberg, our Florida estate planning attorney has extensive experience handling POA issues. If you have any specific questions or concerns about how to use a POA, please do not hesitate to contact us today for a confidential initial consultation. With an office in Fort Lauderdale, we help people navigate estate planning matters throughout South Florida.