by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

Power of Attorney describes a relationship between two people. The first person (we will call him “Tom”) thinks there may come a time when he will not be able to handle his own affairs. He may think that he will become ill or that he will be out of the country, such as while he is in military service, he may be on vacation for a period or time or he may simply have some things coming up which he would rather have someone else handle for him.

If Tom wants someone else to be ready to stand in his place and take care of important matters for him he may name a trusted friend, relative, or attorney to take care of business for him.

Tom has a friend who we will call her Sue. Tom can name Sue as his agent to take care of his business at the bank. When this is done Sue is said to have “power of attorney” for Tom. Sue is now authorized to act on the behalf of Tom. Sue will have papers with him to show that Tom has asked him to help.

These papers are known as a Power of Attorney. The papers are evidence that Tom trusts Sue to help him with his business matters.

Sue must be careful with the money and assets of Tom and Sue must never use Tom’s money for Sue’s benefit. Sue is a trusted person which is known as a fiduciary. As a fiduciary Sue must do only what is best for Tom.

Sue can get paid for being an agent. The fees must be reasonable but Sue can be paid for her efforts.

Powers of attorney differ in when the power starts. Sue can get her power right when the paper is signed or after Tom’s doctor says he is ill enough to need help.

Powers of attorney are also differ in when the power ends. the power of attorney papers show that the authority expires at a certain future date such as after Sue has finished selling Tom’s car.

The authority under some power of attorney papers can end when Tom becomes unable to speak for himself.

If a power of attorney grants authority which lasts beyond any disability Tom may have in the future is called a ‘durable’ power of attorney. It is said to be durable because it lasts through the disability.

In any case all powers of attorney end with the death of Tom. No authority lasts after Tom has died.