The Common Law

Family Law – Power of Attorney (Part One) My mom is getting older, and her health is getting worse. Someone suggested that at some point she may want to consider entering into a "power of attorney" agreement. What does "power of attorney" mean?

A power of attorney is a legal instrument that is used to delegate legal authority to another. The person that signs (or "executes") a power of attorney is called the principal. The power of attorney allows the principal to give legal authority to make decisions on her behalf to another person, usually referred to as an agent or attorney-in-fact.

In most cases, the power of attorney is used if the principal has an illness or disability. For example, a power of attorney may be appropriate for someone that has a medical condition (like Alzheimer's disease) that prevents the person from making personal and financial decisions on their own behalf. In this situation, the agent would have the authority to take action for the benefit of the principal. In addition, power-of-attorney agreements are sometimes used when the principal cannot be physically present to enter into legal agreements.

The Durable Power of Attorney Act addresses durable power of attorney agreements under Texas law. The act allows a durable power of attorney to cover all aspects of someone's personal and financial affairs, or can limit the granted authority to specific situations and activities. Examples of the kinds of authority that can be given to an agent include the ability to conduct property transactions, stock and bond transactions, banking and other financial transactions, as well as deal with tax matters and initiate legal proceedings on the principal's behalf. For a complete list of all the powers that can be granted under the Texas Durable Power of Attorney Act, take a look at the Probate Code, sections 481 to 506 (www.capitol.state.tx.us/statutes/pb.toc.htm).

Check out next week's column for other questions relating to durable power of attorney agreements.