In this article, you will discover:
A statutory durable power of attorney is financial in nature. If you are no longer capable of handling your financial affairs, you designate someone you trust to act in a fiduciary capacity on your behalf.
A statutory durable power of attorney is only applicable during your lifetime. Once you pass away, that power of attorney terminates.
Designating someone to manage your affairs while you are still living requires a high level of trust. If you have an intuition that someone you know is skilled in managing finances, that may be a person you can trust to be your power of attorney. Often, a spouse, adult child, or other close relative serves in this role.
There are two ways a power of attorney can become effective:
In the state of Texas, a statutory durable power of attorney does not make medical decisions. Texas has a separate medical power of attorney that’s only applicable to healthcare decision-making. Sometimes that’s the same person as the statutory durable power of attorney, but it doesn’t have to be. You could, for instance, make one child your financial power of attorney and another child your medical power of attorney.
Having more than one statutory durable power of attorney is not recommended. It’s preferable to have one person designated in that role to deal with financial institutions, life insurance companies, or any other financial entities.
You should also record your statutory durable power of attorney in the records of the county in which you reside so that your financial institutions can easily access it right from the county records.
In Texas, there are two types of powers of attorney:
In both cases, you have the choice to have them take effect immediately or upon your incapacity. You can designate the same person for both roles, but a statutory durable power of attorney and a medical power of attorney are two separate documents and roles.
There is also a children’s medical power of attorney recommended for instances where your minor child is injured and you’re not immediately available to make medical decisions.
The Texas Estates Code provides a recommended form for a statutory durable power of attorney, which most financial institutions in Texas recognize as valid. The challenge is that sometimes you’re dealing with an institution that may have financial interests in many states.
Banking, for instance, is no longer necessarily regional or local in nature. Sometimes, a bank will have its own form or be accustomed to a particular form used in another state. However, the genesis is the same: You want to designate someone you trust to manage your financial affairs in the event you’re unable to do so. Hopefully, it won’t matter which form is used, and that challenge can be overcome.
A power of attorney created in Texas wouldn’t necessarily be invalid outside of the state. Suppose you live in Texas but have an investment account with a national company. The legal department of brokerages or life insurance companies that do business in all 50 states should understand that estate planning is dictated by the laws of Texas, where you reside.
Typically, you can work with the company’s legal department when challenges arise. Your attorney can familiarize and educate them regarding the form you used. Sometimes, they may require additional documentation from the power of attorney; however, those issues can generally be easily resolved.
All estate planning should be reviewed at least every 10 years or whenever a significant life event occurs. Priorities in life change. Perhaps a spouse has passed away or you’ve gotten divorced. If there is an important life event, all estate planning documents should be reviewed to ensure that everything is still as you wish.
There are many possible contingencies. For instance, as you age, you may want to designate someone younger than you as your power of attorney. It’s also advisable for both the statutory durable power of attorney and medical power of attorney to have alternates designated in the event your primary is unable to serve or predeceases you.
Suppose your child goes off to college at 18 and is no longer living near you. You may want to designate a medical power of attorney for them in the event they suffer an unexpected accident. If your child were injured, a healthcare provider would not, under HIPAA privacy rules, be able to share your child’s condition with anyone other than you unless they were designated your child’s medical power of attorney.
Consider where you are in life when you execute your estate planning documents. Everything you sign is revocable and can be updated or changed. Although estate planning is intended to be a snapshot of your current situation, you can always change or update it.
For more information on durable powers of attorney in Texas, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (210) 824-4001 today.
Attorney Seth Bell is a skilled lawyer based in San Antonio, Texas, who has helped clients like you navigate the intricacies of estate planning law. With decades of experience, he is prepared to assist in designating a trusted durable power of attorney to act on your behalf in financial matters when you are unable.
Still have questions? Ready to get started? Contact the Law Office of Seth K. Bell today to schedule an initial consultation.