Power of Attorney in Tennessee
Have you ever wondered who would take care of your finances or make decisions for you if you become unable to do so for yourself?
Don’t worry about leaving it up to whoever the law says has this right. Look into securing a power of attorney. This legal document allows you to prepare for any situation where you may need someone else to make decisions for you. With the help of an attorney in Tennessee, you can easily set one up and get peace of mind today.
What Is a Power of Attorney?
The American Bar Association defines power of attorney as a document that gives the power to act on your behalf as a legal agent. This authority may either be temporary, or permanent. The result is that your designated agent can manage your affairs without your written approval.
Why Would You Need a Power of Attorney?
One common reason to establish a power of attorney (POA) is for convenience. It allows someone you trust to manage your assets or handle important tasks without needing your constant approval. In , a POA simplifies processes by granting authority to someone to act on your behalf.
Another important reason is when you’re unable to make sound legal decisions yourself. A POA ensures that someone you choose can step in and make decisions in your best interest. This is often a safeguard for senior citizens or individuals with serious physical or mental conditions that limit their ability to make informed choices.
Types of Power of Attorney
Not every POA grants the same powers to your agent. You can choose from different POAs to cater to what best suits your situation.
General Power of Attorney
A general POA grants an array of powers to the agent. This can include:
- The ability to handle your financial matters and accounts
- Power to manage your insurance needs
- The ability to operate your business
- The ability to make business decisions on your behalf
- Power to hire or fire employees
- The ability to settle claims against you
- The ability to change your estate plan.
You may use this type of POA if you will be away for an extended period and need legal representation in Tennessee to handle your affairs. This legal arrangement may happen during your absence. Or, it may occur in a situation where you cannot make the decisions on your own due to an illness or injury.
Special Power of Attorney
A special POA is more specific. You have the power to sign off on distinct powers granted to your agent. If you only want someone to sign off on real estate deals, for example, a limited power of attorney would be proper. You may use a special POA when you don’t have the time to deal with specific affairs due to time or health constraints.
The Tennessee Commission on Aging & Disability provides a guide with some advice about this concern. In particular, they address the possibility of creating a financial power of attorney. They identify the four duties of a fiduciary as the following:
- Only act in the best interests of the principal
- Manage money and property carefully
- Keep money and property separate
- Maintain good records
Health Care Power of Attorney
A healthcare Power of Attorney (POA) gives your agent the authority to make medical decisions for you if you are unable to do so. This can be crucial if you are unconscious or otherwise incapacitated. Depending on state laws, your agent may even have the power to make life-altering decisions, such as terminating life support.
If you are elderly or dealing with a serious illness, a healthcare POA can ensure someone you trust can make decisions on your behalf when you’re unable to. This allows you to maintain control over your care, as the POA can be granted to a family member or trusted individual to act in your best interest when needed.
Durable Power of Attorney
A durable power of attorney enables the agent to control specified functions. DPOAs are useful if you anticipate losing your mental faculties, such as after an Alzheimer’s diagnosis. In essence, it acts as a preventative safeguard.
Tennessee law addresses how to approach a DPOA for healthcare reasons particularly. Furthermore, current legislation establishes the powers an agent can exercise. In general, they can make life-and-death decisions based on the recommendations of healthcare professionals. Unless otherwise specified in the agreement, the attorney-in-fact will have considerable discretion.
Choosing an Agent
The person you choose as an agent should be someone you trust. Often, people choose a family member. Your family members usually have your best interests in mind and are close to you. However, you can select any individual to be your POA. Keep in mind that whoever you choose will be in charge of managing your affairs and should be someone you trust to honor your wishes.
Appointing Multiple Agents
As principal, in Tennessee you have the right to appoint multiple agents. You decide whether these agents act together or make separate decisions. Having two or more agents establishes a system of checks and balances. This procedure keeps one agent from making too rash of a judgment. However, it can also lead to discrepancies that can cause delays.
At the very least, it is crucial to have a backup POA should something happen to your primary. A successor agent can take control once the primary agent either passes away or cannot carry out the duties of an agent.
Revoking a Power of Attorney in Tennessee
You have the right to revoke your power of attorney at any time as long as you are of sound mind to do so. You will need to put your revocation in writing and file it with the same place in Tennessee that handled your original POA paperwork.
Another party may also try to revoke your POA. Although, that becomes a much more complex legal proceeding and would be difficult to prove in court. The person would have to show the agent has done something to jeopardize your interests.
An example of how this may work comes from the Tennessee Code. The principal can revoke a healthcare POA agreement orally or in writing. Once this happens, the provider has to make reasonable efforts to notify the agent about the revocation.
Using a POA to Protect Your Interests
You can insert provisions into your agreement that force your agent to report to an outside party. For example, a family accountant or a designated medical doctor could fill this role. This arrangement adds another layer of security and guarantees that another party can review decisions.
Another example of a third-party POA involves tax preparation. The Tennessee Department of Revenue supplies a form for this purpose. This document gives a preparer the authority to obtain confidential information. They can also sign agreements or consent to other tax concerns on your behalf.
Do I Need a Lawyer to File POA in Tennessee?
It is wise to consult with an attorney who specializes in Tennessee trust or estate issues. POA paperwork can be complex, so having a dedicated Tennessee legal professional can be helpful. A lawyer can also help you add provisions that safeguard your interests when you cannot look out for yourself.
Work with an Experienced Local Lawyer in Tennessee
If you want to create a power of attorney, you should begin by speaking with an attorney. We can match you with an experienced Tennessee who can help you navigate your POA. We can even help you connect with an attorney across Tennessee state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations.
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