POWER OF ATTORNEY
A power of attorney is an agency agreement where the giver (donor)
grants to the receiver (donee) powers to act on behalf of the giver as to the giver's property. There are two types of powers
of attorney, special and general powers of attorney. A power of attorney terminates on the death of the giver.
A special power of attorney limits the receiver's power to a specific
purpose such as the sale of a house. A general power of attorney is unlimited in scope.
A general power of attorney is an important legal document for a husband
and wife to have because it is possible today to create a power which is durable. In plain words, the power of attorney remain
in force even if the giver becomes mentally disabled. This is important because under the Common Law an agency such as a power
of attorney terminates if the giver becomes mentally incompetent. The giver was deemed legally dead. This can save the expense
(including doctor fees and a court appointed attorney for the incompetent) of having to file in SuperiorCourt for a conservatorship
application and the three or four months needed to finalize the petition.next column
A general power of attorney
is a dangerous document since the receiver can wipe out the giver's assets. Thus, it is recommended:
- That you only appoint a spouse
or some other trusted relative.
- Include a termination date so that at some
point the power automatically expires.
- If you already have a power of attorney, it
is a good idea, again, to dust it off and review it to make sure:
- That it is durable.
- That it has not expired on its face and must
be renewed.
- That it contains a banking clause (some banks
may not honor the power of attorney without this clause which became law in NJ in 1991)
LIVING WILLS
A living will is a document in which you appoint a health care representative (a
form of medical power of attorney) to make decisions for you if you are physically or mentally incapacitated.
In a living
will you can also give specific directive to your doctor and health care representative as to what, if any, life sustaining
treatment you desire if you are at the terminal stage of an illness or disease. You can also make a provision for organ donation.
In 1994 New Jersey adopted a statutory form of living will which all doctors
and hospitals are required to follow.
Living wills can save your family much grief and expense if you are in the terminal
stage of an illness. If you already have an older living will, it should be reviewed to assure that it conforms to NJ law
