Excellent! A power of attorney that names someone you trust to act on your behalf if you are unable to do so due to injury, illness, or incapacity -- whether short term or for the rest of your life -- is a critical piece of anyone's personal Peace of Mind plan.
Caution! Unless the power of attorney specifically states that it remains in force and effect even if you become incapacitated it may not be acceptable to a financial institution, hospital, nursing home, etc. Also, if the power of attorney is a limited power, for example if the document allows your trusted "attorney in fact" to file your taxes or conduct banking matters only, it cannot be used for other purposes such as dealing with medical professionals, selling or managing real estate, or any other purpose not specifically listed.
The bottom line: you want to ensure that your power of attorney has the effect of a "Durable General Power of Attorney" [DGPOA]. This DGPOA can be effective immediately and can be used by your trusted attorney in fact when needed (i.e., when you are unable to act for yourself). The DGPOA can also be what is known as a "springing" durable general power of attorney. This type of DGPOA only takes effect when you become disabled or incapacitated which must be confirmed by a letter or sworn affidavit
from a treating physician.
One final caution. A DGPOA is a powerful legal instrument which gives the person or persons you've named to act on your behalf nearly unlimited authority. There is always the possibility that your attorney in fact may breach his or her legal fiduciary duty to you and do things for their own benefit and/or not in your best interests. Choose wisely!
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