A power of attorney (POA) is a legal document that allows someone you trust to make decisions on your behalf. These decisions could be related to finances, health care, or other important aspects of your life. While it’s an essential part of estate planning, you should periodically review and update your POA to ensure it still reflects your needs.
Life changes that require an update
There are key life events that should prompt you to update your POA. If you experience significant changes in your personal or financial life, it’s time to review your document. For example, if you marry, divorce, or remarry, you might need to adjust the named agent or the authority given to them.
Additionally, the birth of children or grandchildren could make it necessary to reconsider who you choose as your agent or to add provisions related to your family’s well-being.
When your agent can no longer serve
Your power of attorney gives a trusted individual the authority to act on your behalf. However, circumstances can change. If your agent becomes incapacitated, moves away, or passes away, the POA may no longer be effective. In Virginia, you should update your POA immediately to appoint a new agent if your original choice is no longer available or capable of fulfilling the role.
Changes in the law or your financial situation
If there are changes in tax laws, healthcare regulations, or banking practices, it might be time to revise your POA. Your financial situation might also evolve, requiring you to give your agent additional authority or limit it in specific areas.
Health-related reasons
If you’re diagnosed with a serious illness or develop a medical condition that affects your ability to make decisions, you may want to revise your POA. A durable power of attorney for healthcare can give someone you trust the authority to make medical decisions for you if you become incapacitated.
You should update this document if your healthcare preferences change, particularly if new treatments or options become available.
Keeping your power of attorney up to date ensures that your wishes are followed and the right person is in charge when necessary.
