Why Do You Need a Power of Attorney in Tennessee?

Transferring the assets of a deceased loved one is an involved process, and it helps when that process is initiated before the decedent passes away. A key part of estate planning is understanding what tools to use to protect your assets. It’s also helpful to know the answers to important questions like, “Why do you need a power of attorney in Tennessee?”

Estate planning is an important part of life that you can start at any point in time. In fact, the earlier you plan, the better. By understanding the different aspects and unique roles people have in the process, you can better plan for how to protect your assets. You can also ensure a peaceful transfer of those assets upon your death.

What Is a Power of Attorney?

A power of attorney (POA) grants a person (the agent) the legal authority to act on behalf of another person (the principal). An agent is typically able to make decisions about finances, healthcare, and legal affairs, depending on the scope of their authority. There are four main types of POA you can use in Tennessee:

• General power of attorney: This type of legal document grants the agent a broad authority over most financial and legal matters for another person. It’s important to note that general POAs are no longer valid if the principal becomes incapacitated.
• Limited power of attorney: A limited POA gives an agent authority over specific tasks or for a specific period of time. The scope of the limited POA is the most important aspect that must be clearly defined.
• Durable power of attorney: This type of POA is similar to a general POA, except it remains effective if the principal becomes incapacitated. This allows the agent to continue taking care of the principal’s responsibilities without any interruptions.
• Healthcare power of attorney: This POA gives an agent the ability to make medical decisions on behalf of the principal, including ongoing treatments, surgeries, and other medical needs.

Tennessee also recognizes a “springing power of attorney,” which can provide protection over a principal’s affairs under certain circumstances. Typically, these types of POAs come into effect if a principal becomes unexpectedly incapacitated.

The number of Americans with estate planning documents has gone down since 2022, with more than 50 percent of survey respondents saying they don’t have a will at all. With 7,227,750 people living in Tennessee, it’s safe to say that too many of them do not have proper plans in place for what happens to their assets and property when they pass away.

Benefits of Using a Power of Attorney in Tennessee

It’s important to note that you’re not required to give someone power of attorney as a part of your estate planning process. That said, it’s highly recommended as an additional protection for managing your affairs in several situations. By assigning a power of attorney to someone you trust, you can have reassurance in knowing your affairs are still being handled if you become incapacitated or unable to deal with them on your own.

The leading causes of death in Tennessee are cancerous tumors, heart disease, COVID-19, and accidents. That said, death can come at any time. That’s why it’s so important to have a plan in place for when the time comes. By using a power of attorney, you can have someone who can advocate for you if you cannot do so for yourself.

FAQs

Q: What Are the Legal Requirements of a Financial Power of Attorney in Tennessee?

A: Your power of attorney must meet certain requirements to be considered legal in Tennessee. First, the person making a power of attorney must be of sound mind. Additionally, many institutions won’t rely on POAs that are not notarized, so it’s wise to look into signing your POA in front of a notary public.

Q: Who Can Be Named an Agent With Power of Attorney in Tennessee?

A: Technically, anyone can be named as an agent with power of attorney so long as the principal trusts them. That said, it’s wise to think carefully about this decision to make sure you choose someone who makes the most sense. Consider where the person lives and how reliable they are, among other crucial factors.

Q: Who Makes Medical Decisions If There Is No Power of Attorney in Tennessee?

A: If you do not have a healthcare power of attorney in Tennessee and lack the capacity to make decisions on your own, your healthcare provider may choose who oversees your medical decisions.

There is a hierarchy of preferred options in these situations under Tennessee law. Typically, the responsibility may fall, in this order, to a spouse, an adult child, a parent, a sibling, an adult relative, or a friend who meets the specified requirements.

Q: What Are the Types of Power of Attorney in Tennessee?

A: There are four main types of power of attorney you can use in Tennessee:

• General POAs
• Limited POAs
• Durable POAs
• Healthcare POAs

These categories are broken down further to describe the specific actions they have control over, including medical POAs and financial POAs. The type of power of attorney dictates what rights a person has on behalf of another person.

Discuss Your Case With a Tennessee Estate Planning Lawyer to Understand Your Options

Estate planning can be a challenging process, which is why it’s important to understand your rights and know when to seek legal recourse to protect them. Fortunately, you don’t have to do it on your own.

By working with a Tennessee estate planning lawyer at Emmack Probate and Estate Law Group, you can make organizing your future a stress-free process. Our goal is to make sure you feel confident about the decisions you’re making, including assigning a power of attorney.

If you have more questions about the process or are ready to make decisions about your estate plan, reach out to our team to set up an appointment. You can talk to a Tennessee estate planning lawyer and start making moves to protect your assets for the future.