What is a power of attorney?

I know it sounds kinda like a superhero origin story, but a “power of attorney” has nothing to do with shooting laser beams or leaping tall buildings. Many times, plans need to be made to help a family member, friend, or loved one who cannot care for themselves. One of the primary tools Nebraska law provides to help is a power of attorney.

The purpose of a power of attorney is to grant legal decision-making power for an individual to another person. The person who is granting the power of attorney to another person is called the “principal,” and the person to whom the power is granted is called the “agent.”

This granting of decision-making power can either be “plenary,” meaning a granting of all the power that the law allows, or limited to a certain area or areas, such as transferring real estate or for governmental benefits. The granting of authority can also be conditional. So, for example, the power of attorney could be conditioned to only take place if the principal was determined to be temporarily incapable of making decisions, as affirmed by a medical professional.

A power of attorney is an act that the principal takes voluntarily and independently, which means the principal must be capable of making legal decisions for him or herself. Thus, a child cannot exercise a power of attorney, nor can a person who is subject to a guardianship.

A power of attorney is always revocable, meaning the principal can alter or terminate the granting of authority to the agent at any time. Because the power comes from the principal, then, a power of attorney also terminates once the principal dies. It is not a substitute for a will, which is how an individual’s property is directed to be transferred after the individual dies.

Powers of attorney are executed by the principal signing the document and their signature either being notarized or witnessed. A power of attorney does not need to be filed with a court to be effective, but it is important that the agent has access to a copy.

We at Runge Law Office have experience with crafting powers of attorney to meet our clients’ specific needs. Contact us if you have any questions or would like to discuss setting up a power of attorney for yourself or your loved one.