Life is a journey that is filled with highs and lows. The lows on life’s journey can cause you to rethink your health and finances.
Have you reached a new point on your journey and are wondering what will happen if you are unable to make decisions on your own behalf?
A Power of Attorney in New Mexico enables you to appoint a trusted family member or friend to step into your shoes, granting this person legal authority to make decisions on your behalf about:
- Health
- Finances
- Personal affairs
You can grant this power to act on your behalf by creating a legal document. This important document enables you to grant authority to a trusted person to handle your finances and assets if you are unable to make decision on your own behalf.
The person that you grant decision making authority to is called an attorney-in-fact or agent. You can grant this person either a limited or wide range of authority over your personal and financial matters, including the authority to:
- File your taxes
- Sign documents
- Handle your financial transactions
- Manage your bank accounts, investments, and personal property
- Cash checks and pay bills on your behalf
- Collect money that is owed to you
- Make gifts or donations on your behalf
- Manage your trust documents and estate
- Run your business
- File legal actions in your name
In New Mexico there are four categories of Power of Attorney, including:
Limited
- This limited version grants authority for a limited period and has an expiration date. You choose the expiration date.
General
- Grants your attorney-in-fact/agent full authority to act on your behalf. This version often includes all points of authority listed above and ends when you either die or become incapacitated.
Springing
- Is like the General version as it grants your agent full authority to act on your behalf. The difference is that this version only springs into action when you become incapacitated.
Durable
- The Durable version can be either general or limited in capacity. This version remains in place if you become incapacitated and enables your agent to continue representing your interests if you become incapacitated. In this sense, this version is stronger — more durable — than the other three versions listed above.
WHAT IS A POWER OF ATTORNEY IN NEW MEXICO?
A Power of Attorney in New Mexico is a legal document that grants someone the legal power to act on your behalf. If you give someone Power of Attorney on your behalf, you are the principal and the person acting on your behalf is the attorney-in-fact/agent. Your Power of Attorney document should be clear and easy to understand. The powers granted by your Power of Attorney document can either be very broad, or very limited.
HOW DO I KNOW IF I HAVE BEEN GRANTED POWER OF ATTORNEY IN NEW MEXICO?
To know if you have been granted Power of Attorney over an individual you would need to ask that person. You should also discover from the person that named you as their attorney-in-fact/agent their specific wishes regarding the powers that you have been granted.
HOW DO I MAKE DECISIONS AS AN ATTORNEY-IN-FACT/AGENT?
Your decisions should be guided by the best interests of the person naming you as their attorney-in-fact. If the person granting you Power of Attorney becomes incapacitated to make decisions regarding their medical or financial affairs, your decisions should always be in their best interests. For these reasons, it essential to discover your grantor’s specific wishes on how to act on their behalf if they become incapacitated.
WHAT ARE THE FIDUCIARY DUTIES OF AN ATTORNEY-IN-FACT/AGENT?
While acting as an attorney-in-fact/agent your actions must be guided by the principal/grantor’s requests or best interests. Failing to act according to the principal/grantor’s requests or best interests could be a violation of your fiduciary duty. Violating your fiduciary duties could cause you to face liability to the principal/grantor, or creditors.
WHEN DOES A POWER OF ATTORNEY IN NEW MEXICO BECOME EFFECTIVE?
A Power of Attorney in New Mexico can take place immediately after signing. A Durable Power of Attorney usually becomes effective immediately. On the other hand, a Limited Power of Attorney.
HOW DO I CANCEL THE DOCUMENT?
You can cancel the document at any time. To do so you would provide your attorney-in-fact/agent with signed, written notice of your intent to revoke the Power of Attorney.
What is a Power of Attorney in Albuquerque, NM?
