A power of attorney (POA) is an estate planning tool in New Jersey in which you appoint a person, known as the agent, to manage your affairs. Typically, the agent is appointed to manage financial or medical matters when you cannot do so yourself because you are incapacitated by illness or injury.
People are often confused, however, as to when and which type of POA is needed. At Mongiardo Law Group, our estate planning attorneys in Passaic County will listen to your concerns and needs, review your estate, and advise you on which POA is best for you and your unique situation. Contact us today at (973) 298-4557 or online to schedule a free consultationto learn more about how and why a POA can complement your estate plan.
What Constitutes a Power of Attorney in New Jersey?
A power of attorney is the legal authorization for one person, the agent, to act on behalf of another person, the principal. POAs are a common element of estate planning, as they allow a person who is losing their ability to manage their own affairs choose someone they trust to make decisions for them.
Medical POA
A medical POA is sometimes referred to as an advance directive because it allows you to appoint a healthcare agent to make medical decisions for you when you cannot do so. It is limited by your specific medical preferences and any other directive you may have as part of your estate plan, like a living will or a "do not resuscitate" (DNR) form.
General POA
A general POA allocates broad powers to your agent to act on financial, business, real estate, and legal matters. This POA is limited only by the terms set out in the POA or by any relevant state statute.
When is a Power of Attorney Necessary in New Jersey?
A power of attorney is a useful tool for people who are losing the ability to understand the repercussions of their decisions and actions. By giving an agent the power to make those decisions, a principal can rest assured that someone is taking care of them.
A POA is common in the following situations:
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The principal suffers from a worsening medical condition that impacts their mental capacity, such as Alzheimer's disease or dementia
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The principal is physically disabled and cannot sign important documents
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The principal wants to give someone else the power to make specific decisions on their behalf
There are, of course, other reasons why you may want or need a power of attorney created. Speaking to an estate planning attorney in New Jersey is the best way for you to identify and determine what will work best for you.
Challenges to a Power of Attorney in New Jersey
In a POA, a family member or another close person is usually listed as the agent. Sometimes, problems or conflict arise, leading to another family member disputing the POA. There are several possible ways to challenge a POA, including the following:
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The principal is mentally incompetent. The principal of the POA chooses the agent. If a family member wants to contest the POA, proving the principal was mentally incompetent (e.g., has dementia, a psychiatric issue, or another form of mental incapacity) is one way it might be done. This type of dispute is often through a battle of the experts.
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Formalities were not followed. POAs require a number of formalities, such as signature and witness requirements. Failure to follow or satisfy the formalities can mean the POA is invalid.
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Agent abused authority. When an agent abuses their authority, a POA can be challenged. Examples of abuse include stealing the principal's assets, mismanaging assets, or neglecting the principal's needs altogether.
Hiring an experienced estate planning attorney to draft the power of attorney can prevent disputes in the future.
Contact an Estate Planning Lawyer in New Jersey Today
Powers of attorney are powerful tools to make sure your finances and other business or personal matters are properly managed while you are incapacitated or otherwise unable to oversee them yourself. You can speak to an attorney at Mongiardo Law Group to discuss powers of attorney specifically or as part of an overall estate plan.
We always believe that our clients make better choices for themselves and their loved ones when they are well-informed and adequately prepared. Contact Mongiardo Law Group today at (973) 298-4557 or online to schedule a free consultation.
