What Is a Power of Attorney and Do You Need One in Missouri?
Most people have heard the term power of attorney. Far fewer actually have one. If you are doing any estate planning in Missouri, a power of attorney is not optional — it is one of the most important documents you can have. Here is everything you need to know.
What Is a Power of Attorney?
A power of attorney is a legal document that gives someone you trust the authority to act on your behalf. The person you appoint is called your agent or attorney-in-fact. They can make decisions and take actions in your name according to the terms of the document.
There are two main types of power of attorney that matter for estate planning in Missouri — a financial power of attorney and a healthcare power of attorney. Most people need both.
What Is a Financial Power of Attorney?
A financial power of attorney gives your agent the authority to manage your financial affairs. Depending on how it is written, your agent may be able to:
Pay your bills and manage your bank accounts
File your taxes
Manage your investments and retirement accounts
Buy or sell real estate on your behalf
Run your business if you own one
Apply for government benefits on your behalf
A durable financial power of attorney remains in effect even if you become incapacitated. That word — durable — is critical. A non-durable power of attorney automatically terminates if you become mentally incapacitated, which is exactly when you need it most. Always make sure yours is durable.
What Is a Healthcare Power of Attorney?
A healthcare power of attorney gives your agent the authority to make medical decisions on your behalf if you are unable to make them yourself. This includes decisions about treatment, surgery, medication, and end-of-life care.
Without a healthcare power of attorney, doctors may not be able to share your medical information with your family. Your loved ones may disagree about your care. In some cases a court may need to appoint a guardian to make decisions for you — a process that takes time and costs money.
A healthcare power of attorney puts someone you trust in charge. It eliminates confusion and conflict at the worst possible time.
What Is the Difference Between a Power of Attorney and a Living Will?
These two documents are often confused but they serve different purposes.
A power of attorney appoints someone to make decisions for you. A living will — also called an advance directive — states your own wishes about end-of-life care directly. It tells your doctors what you do and do not want if you are terminally ill or in a permanent vegetative state.
Both documents work together. A living will tells your agent and your doctors what you want. A healthcare power of attorney gives your agent the authority to carry those wishes out.
What Happens If You Don't Have a Power of Attorney in Missouri?
If you become incapacitated without a power of attorney in place, no one automatically has the legal authority to manage your finances or make medical decisions for you — not even your spouse.
Your family would need to go to a Missouri court and petition for a guardianship or conservatorship. That process takes time, costs money, requires court supervision, and the judge may not appoint the person you would have chosen.
A simple durable power of attorney avoids all of that entirely.
When Does a Power of Attorney Take Effect?
That depends on how it is written. Some powers of attorney take effect immediately when you sign them. Others are springing powers of attorney, meaning they only take effect when a triggering event occurs — such as a doctor certifying that you are incapacitated.
Your estate planning attorney can help you decide which type makes the most sense for your situation.
Can You Revoke a Power of Attorney?
Yes. As long as you are mentally competent you can revoke a power of attorney at any time. You simply need to notify your agent in writing and ideally notify any institutions that were acting on the document.
Who Should You Name as Your Agent?
Your agent should be someone you trust completely. They will have significant authority to act in your name so choose carefully. Most people name a spouse, adult child, sibling, or close friend.
You should also name a successor agent — a backup in case your first choice is unable or unwilling to serve when the time comes.
Do You Need a Power of Attorney If You Have a Trust?
Yes. A trust manages the assets that are titled in the trust's name. A power of attorney covers everything else — financial decisions, medical decisions, and assets that were not transferred into the trust. The two documents work together as part of a complete estate plan.
How Do You Get a Power of Attorney in Missouri?
A power of attorney must be signed by you and witnessed and notarized according to Missouri law. It is not a document you want to download from the internet and fill out yourself. An improperly drafted power of attorney may not be honored by banks, hospitals, or other institutions.
Working with an experienced estate planning attorney ensures your power of attorney is properly drafted, legally valid, and tailored to your specific situation.
Talk to a Lee's Summit Estate Planning Attorney
Zach Lund helps Missouri families in Lee's Summit and throughout the Kansas City metro area put the right documents in place — including wills, trusts, and powers of attorney. If you do not have a power of attorney, now is the time to get one.
Call 816-875-2380 or schedule a free consultation online today.