POWERS OF ATTORNEY
Found in the General Obligations Law Section 1500 et seq.

Summary by Linda W. Chodos, Esq.

1. Definition: a power of attorney allows a third party, to make decisions and conduct transactions on behalf of the person making the document, known as the “Principal”.

2. A power of attorney is part of good estate plan. It is not only useful for times of incapacity or disability, but is also useful if you are out of town or otherwise unavailable.

3. The powers granted can be as broad or specific as you prefer and can be given for an indefinite period of for a time-limited period.

4. There are two kinds of powers of attorney: a durable power of attorney and a springing power of attorney.

• The “durable” power of attorney takes effect immediately and remains in effect even if you become incapacitated.

• The “springing” power of attorney takes effect only upon the happening of a triggering event such as you becoming incapacitated.

• Both forms of the power of attorney can be revoked at any time as long as you remain competent.

5. The person or persons given the power to act for you is known as the “attorney-in-fact. The attorney-in-fact can only do what you yourself could do and cannot do anything you do not have the power to do. Therefore, a power of attorney will terminate if you should die.

6. More than one attorney-in-fact can be appointed. In the case of multiple attorneys-in-fact, you must designate whether each can act separately or if they must act together.

7. You must designate which powers you want to give your attorney-in-fact. For example, your attorney-in-fact can be permitted to sell your house, pay your taxes, carry on financial transactions for you, buy insurance on your property or life, collect money on your behalf, and take care of personal business such as caring for your family members.