When Should You Update Your Power of Attorney?
In the realm of estate planning, a Durable Geneal Power of Attorney (DGPOA) for your finances is one of the most powerful tools at your disposal. It allows you to designate someone to control your finances on your behalf in the event that you become unable to do so. However, like all legal documents, a Power of Attorney is not a "set it and forget it" agreement. Circumstances change, relationships evolve, and legal standards may shift—prompting the need for an update.
Here we will delve into the situations that warrant a review and potential update of your Power of Attorney, ensuring that your financial and healthcare decisions align with your current wishes.
1. Major Life Changes
One of the most common reasons to update your Power of Attorney is a significant life event. Here are some examples:
Marriage or Divorce
If you get married or divorced, it's crucial to review your POA. Changes in your relationship status may warrant appointing a new agent or changing existing provisions to reflect your current wishes.
A Child is Ready for Responsibility
At one time, your kids may have been too young but now they’re grown up and ready.
Death of an Agent
If the person you've designated as your agent passes away, it’s essential to consider appointing a new agent.
Relocation to New State
If you move to a new state, the laws could be different.
2. Issues with Your Agent
Your Agent is Too Old or Infirm
They may be unreliable or possibly not able to do the job when called upon.
Death of an Agent
If the person you've designated as your agent passes away, it’s essential to consider appointing a new agent.
You Had a Falling Out
You don’t get along with or trust your agent any longer. It’s time for a change.
Relocation to New State
If your agent moves and is too far away to do the job, it’s a good time to take a look at your POA.
3. Digital Assets
We increasingly manage our accounts online. We also have dozens (or more) online accounts that are important to us. Who will manage your social media accounts (e.g. Facebook, Twitter, Instagram) when you’re unable? How about the personal emails you've sent and received? Online photo albums? The files on your laptop? Your PayPal or Venmo accounts? Does your agent have the technical know-how to manage these accounts on your behalf. Your power of attorney should have specific provisions giving your agent access to and control over these accounts.
4. Changes in the Law
Don’t let your power of attorney become powerless. Another reason to review your power of attorney every few years is to check for legislative changes. As new laws are passed, additional provisions may need to be added to keep them current and prevent them from being rejected. In Pennsylvania, for example, significant changes in the law relating to powers of attorney were passed in 2015. If you have a power of attorney from 2015 or earlier, it’s a good idea to have it reviewed and updated.
Updating your Power of Attorney in Pennsylvania is a crucial aspect of financial and estate planning. Whether you are motivated by a life change, shifting relationships, evolving health conditions, or simply the passage of time, taking the initiative to keep this important document current will provide you with peace of mind and ensure that your wishes are honored.
If you have questions or need assistance in updating your Power of Attorney, don't hesitate to reach out to the experienced estate planning and elder law attorneys at Fiffik Law Group. It's essential to ensure that your document reflects your current life situation and preferences, allowing your designated agent to act in your best interest when the time comes.