A power of attorney is a document in which you authorize a person, called your agent, to take tax, legal and financial matters for you. Almost everyone should have a power of attorney. But if you do, when do you feel comfortable giving your agent the right to act on your behalf? Many powers give the agent the power to act as soon as you sign the document. But do you want your kid to have that level of power now? Many people prefer that their agent only have the right to act after they are disabled, when they'll really need the help. A power of attorney that "springs" into effect only when you become disabled, is called a springing power of attorney. While commonly used these are not simple documents and you really should have such a document prepared by an attorney. First, make sure that a springing power is valid in your state. Second, review carefully what must be done to demonstrate your disability in order for your agent to act. If the process is too involved you may defeat the point of having the power.
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