You decide the time has come to put your affairs in order. Estate planning may be a long and drawn-out affair. If you have people around whom you trust, the process may be a little easier. When deciding on who to take responsibility of the Power of Attorney, you may want to choose someone you trust to keep your most favorable interests in mind.
North Carolina has two forms of a POA. The first is financial. It allows you to choose a person to act on your behalf to make both financial and legal decisions. The second form is the health care power of attorney. With this document, you allow someone to make health care decisions for you if you were to become incapacitated or mentally incompetent.
The act
On Jan. 1, 2018, the North Carolina Uniform Power of Attorney Act came into being. The act ushered in changes for how the state executes and interprets POAs. Here are three pieces of information on the law:
- Durability
A durable POA means the document is still legal when the person becomes incapacitated. In North Carolina, the Uniform Power of Attorney Act states the POA is durable unless the document specifically says it is not. Before 2018, the POA was not durable unless otherwise specified in the paperwork.
- Termination
A POA terminates when:
- The principal, or person who granted authority, dies.
- The principal revokes the POA.
- The POA states termination.
- The POA finishes its purpose.
- The person with authority dies, becomes incapacitated or resigns.
- Notarization and registration
The principal must sign the POA in front of a notary or another authorized person. If the principal cannot sign the document, another person may sign in the principal’s presence. The act does not require registration of the POA. A POA involved in a real estate transaction needs recording in the county where the principal lives.
