Understanding Powers of Attorney in Washington

A Power of Attorney (POA) is an estate planning tool in Washington, where you appoint a person, known as the agent or attorney-in-fact, to manage your affairs. An agent is commonly appointed to handle financial or medical matters, when you are unable to do so yourself, due to illness or injury. However, it can also be used by individuals in full health who wish to delegate authority to another person, for added convenience or assistance in managing their affairs.

Understanding when a POA becomes effective, and which type is right for you, can be confusing. At The Whipple Law Group, our estate planning attorneys take the time to listen to your concerns, assess your estate, and guide you in selecting the most appropriate POA for your unique situation. Contact us at 509-869-3223 to schedule a consultation and discover how a POA can be an essential part of your estate plan.

What Constitutes a Power of Attorney in Washington?

A power of attorney is when one person, the principal, grants legal authorization for another person, known as the agent or attorney-in-fact, to act on their behalf. Often called a Power of Attorney, or just a "POA", this document is a common element of estate planning that allows the principal, who may be losing their ability to manage their own affairs, choose someone they trust to make those decisions for them.

There are six classifications of POAs, many of which can be combined to match your estate planning needs, described below.

1. Durable POA

A Durable Power of Attorney can become effective the moment it is signed, or upon the principal's incapacity. The purpose of a Durable Power of Attorney is to delegate authority that survives the principal's incapacity and is oftentimes used as a least restrictive alternative to guardianship or conservatorship. This authority remains in place until the principal's passing or until it is formally revoked in writing by the principal or a court of competent jurisdiction.

2. Non-durable POA

A non-durable POA can take effect immediately upon signing, or upon a specified event. It does not allow an agent to continue acting on behalf of the principal when they become incapacitated. This style of POA is useful for when the principal requires assistance with financial or medical matters, while not in an incapacitated state. Once incapacitated, only a court-appointed guardian or conservator can make decisions on behalf of the principal, unless directed otherwise in the principal's estate plan.

3. Medical POA

A medical POA is a type of advance directive that allows a principal to appoint a healthcare agent to make medical decisions for them, when they are unable to do so. If effective immediately, a medical attorney-in-fact will be able to work with the principal's medical professionals, in making decisions related to the principal's care (i.e., ordering medications, medical or billing records). While effective upon disability, a medical POA will become effective when the principal is deemed unable to make their own medical decisions. The medical preferences available for the attorney-in-fact to choose from will only be limited by any directive the principal may have as part of their estate plan, like a Health Care Directive or a Do Not Resuscitate (DNR) form.

4. General POA

A general power of attorney, considered nondurable, grants the agent wide-ranging authority over financial, business, real estate, and legal matters. Its scope is restricted only by the terms outlined in the document or by applicable state laws. However, this type of POA expires upon the principal's death and presents significant potential for error. Without precise language, ambiguities may arise, leaving the document open to future legal disputes. To avoid potential disputes and find estate planning catered to the principal's needs, it is important to work closely with an estate planning attorney.

5. Limited (Special) POA

A limited (special) power of attorney grants an agent authority for a specific task, and once that task is completed, the power automatically expires. For instance, a principal might empower a trusted family member, friend, or employee to handle financial matters, such as writing checks and coordinating with vendors, for their small local business.

6. Springing POA

A springing POA takes effect if, or when, a specified medical condition occurs as outlined in the power of attorney. It ends when specified, as outlined in the POA, or when the principal becomes either incapacitated or passes away. It is important to work with an attorney to clearly define the conditions in which the POA will become effective, as having conflicts over legal authority, when the principal's health is deteriorating, is ill advised.

When is a Power of Attorney Necessary in Washington?

A power of attorney serves as a vital instrument for individuals, in the process of estate planning, particularly when they begin to lose the capacity to fully comprehend the consequences of their decisions. By appointing a trusted agent to act on their behalf, the principal gains peace of mind, knowing that their affairs are being managed with care and responsibility by someone they trust.

A POA is commonly requested in the following situations:

• The principal is grappling with a progressive medical condition, such as Alzheimer's or dementia, which diminishes their mental capacity.
• Due to physical disabilities, the principal is unable to personally sign essential documents.
• The principal wishes to entrust someone with the responsibility of managing payments for their assisted living facility on their behalf.

Speaking to one of our estate planning attorneys in Spokane, Washington is an excellent way for you to identify and determine what will work best for you. There are many ways that a power of attorney can help you and your loved ones ensure that your medical and financial needs are taken care of, during the times needed most.

How is a Power of Attorney Created in Washington?

Each state has specific requirements that will need to be met when establishing a power of attorney, or any legal document, within that state. Having the power to make financial and medical decisions for someone else is a serious matter, thus, each state incorporates procedures that must be followed to: 

1. Ensure the power of attorney is legitimate; and 
2. Confirm the principal relinquishing their rights is doing it knowingly and voluntarily. 

Contact us in Spokane to find out exactly what the process is so that you don't make mistakes that could prompt delays or problems.

Challenges to a POA in Washington

In most cases, a family member or close confidant is designated as the agent or attorney-in-fact. However, disputes can arise, often when another family member challenges the authority of the appointed agent. There are three primary grounds on which a POA can be contested:

1. Mental Incapacity of the Principal: The principal—the person who grants the POA—selects their agent. If a family member wishes to revoke or contest the POA, they might argue that the principal lacked the mental capacity to make sound decisions at the time, due to conditions like dementia or psychiatric disorders. Such cases often hinge on expert testimony to determine mental competency.
2. Failure to Follow Legal Procedures: Each state has specific legal requirements for creating a valid POA. A POA may be rendered invalid if these formalities are not properly observed.
3. Abuse of Authority by the Agent: The agent, appointed by the principal to act on their behalf, can sometimes overstep their bounds. If an agent misuses their authority—whether by misappropriating funds, mismanaging the principal's assets, or neglecting their care—the POA can be contested. Proving such abuse, however, is often challenging, as it frequently devolves into conflicting accounts of events. If you are concerned that someone you know is abusing their power as an agent, contact an attorney, to discuss potential steps to protect yourself or your loved ones.

To minimize the risk of future disputes, seeking legal guidance when establishing a POA is a prudent step.

Contact an Estate Planning Lawyer in Spokane Today 

POAs are essential instruments that safeguard the seamless management of your financial, personal, and business matters should you become incapacitated or unable to handle them independently. At The Whipple Law Group, our estate planning attorneys are here to guide you through the intricacies of estate planning, with a particular focus on incorporating POAs into your comprehensive plan.

We firmly believe that our Washington clients make the best decisions for themselves and their loved ones when they are fully informed and well-prepared. To schedule a consultation, reach out to us directly at 509-869-3223 or conveniently online via the form below.