Welcome to the Kazi Law Firm! We are a boutique law firm steeped in Texas tradition personifying the warmth and congeniality consistent with southern hospitality. We believe in preserving integrity and professionalism with true Texan charm, staying true to our roots, while providing essential, affordable legal services to all. Located just north of Dallas, Texas in the rapidly growing suburb of Frisco; the Kazi Law Firm concentrates on contracts drafting and review, immigration law, will & estates, real estate law, landlord, tenant, mediation, and general business law needs.
Chances are that you’re heard of the term “power of attorney.” It is one of the most frequently used documents in estate planning. There are several types of powers of attorney, each with its own rules and provisions, thus, not all POAs are created equal.
A power of attorney is a legal document through which you, as the principal, name someone to have the authority to make decisions and take actions on your behalf. This person is called your agent or attorney-in-fact.
Durable Power of Attorney (DPOA):
A durable power of attorney is a legal document with language stating that this power extends to your agent in the event you become incapacitated and unable to make decisions for yourself. Generally, a durable power of attorney remains in effect until the principal revokes the powers or dies. However, it can also be terminated if a court finds the document invalid or revokes the agent’s authority, or if the principal gets divorced and the spouse was the agent.
What are the Types of Durable Powers of Attorney?
- Medical Power of Attorney – gives the person of your choice the authority to make medical decisions for you should you be unable to do so
- Financial Power of Attorney – gives the person of your choice the authority to manage your financial affairs should you become incapacitated
Are you scratching your head and wondering why the need for different types of powers of attorney? Well, quite simply, you may find that you want one person to make medical decisions for you, such as your spouse, but that your business partner is in a better position to make business-related decisions.
Regular Power of Attorney (POA):
A regular power of attorney, on the other hand, ends if you become incapacitated, which is a prudent reason for having a durable power of attorney in place. You certainly don’t want to discover that a regular power of attorney has ended, just when those powers would be needed most.
It is up to you as the principal to decide exactly what powers your power of attorney should have. The most common and widely used powers include the following:
- Making donations or gifts
- Buying, selling and managing real estate
- Paying bills, including signing checks
- Filing tax returns
- Making medical decisions
- Conducting business transactions
- Handling legal or insurance claims
General or Limited Power of Attorney?
One crucial option to consider when drawing up a power of attorney is whether to make it general or limited. While a general power of attorney can include a combination of the powers described above, including financial, business, legal, and medical, a limited power of attorney does just what it sounds like: it limits the powers granted to the agent.
A limited power of attorney is sometimes referred to as a special power of attorney, and may even refer to one single process or event, such as the authority to sign a contract when the principal can’t due to an illness. A limited or special power of attorney may also be restricted to a specific time period.
When deciding to create a power of attorney, be sure to think about all the aspects you want an agent to handle and consider wisely and carefully the person you will name to be in charge of your affairs, especially in case of your incapacitation. Additionally, be sure to revisit your power of attorney documents regularly, at least once a year, to make sure that they still reflect your wishes. A power of attorney is a powerful document and should not be entered into lightly. Friendships, business relationships, and personal preferences often change with time and it’s crucial to update your POA accordingly.
I built my law practice on the premise of being a life raft in a sea of sharks. I want to be an advocate for those that have been wronged and are too intimidated to seek help. My firm is here to explore your options, guide you through your legal journey, and give you that safe space to ask questions! There’s no such thing as a stupid question…Only the ones you don’t ask. So, my question to my clients is not “do you have any questions?” But rather “what questions do you have?”
As always, the Kazi Law Firm is standing by to help you in your time of need. Don’t hesitate to contact us today. We specialize in real estate law, landlord-tenant disputes, immigration, and wills & estate planning. Family is at the core of our practice. Just as we treat our family with respect and understanding, we treat yours. Come join the Kazi Law Firm family today!
Why swim alone in shark-infested waters when you don’t need to?