Do You Need a Power of Attorney? Here’s Why It Matters More Than You Think

When it comes to legal documents, few are as important—or as misunderstood—as a Power of Attorney (POA). Many assume they do not need one unless they’re elderly, sick, or facing a major surgery. However, the truth is that a POA is not just for emergencies. It’s a powerful legal tool that can protect you, your loved ones, and your finances if the unexpected happens.

What Is a Power of Attorney?

A Power of Attorney is a legal document that allows you (the “principal”) to name someone else (the “agent” or “attorney-in-fact”) to handle your financial, legal, or healthcare matters. The powers you give your agent can be broad or limited, depending on your needs.

Kentucky adopted the Uniform Power of Attorney Act in 2018, codified under KRS Chapter 457. Under this law, POAs in Kentucky are presumed to be “durable,” meaning they remain in effect if you become incapacitated unless otherwise stated in the document.

Do You Need a Power of Attorney?

If you become ill, injured, or otherwise unable to manage your personal affairs, a POA ensures that someone you trust has the legal authority to step in. Without one, your family may have to go through the courts to appoint a guardian or conservator—an often lengthy and expensive process.

By planning ahead and executing a POA, you can spare your loved ones that stress and maintain more control over who will be making decisions for you.

Types of Power of Attorney in Kentucky

Kentucky recognizes various types of POA, each with a specific purpose:

• Financial Power of Attorney: Grants your agent the authority to manage your financial affairs, including paying bills, overseeing investments, or filing taxes.
• Limited or Special Power of Attorney: Grants authority for a specific task or time period.
• Healthcare Surrogate Designation: While often called a Medical Power of Attorney in other states, Kentucky law recognizes healthcare directives under a separate statute. This document designates an individual to make medical decisions for you in case you are unable to do so.

How Do You Choose an Agent? 

The person you name as your agent should be someone you trust completely. They will handle sensitive matters, potentially including access to your bank accounts, real estate, and healthcare decisions. Although you can name multiple agents, selecting one person with a designated backup as a successor is generally easier.

When Should You Create a Power of Attorney?

The best time to create a Power of Attorney is before you need one. Waiting until a crisis strikes can make the process more difficult—or even impossible if you’re deemed legally incapacitated. Early planning allows you to understand your options, choose the right agent, and ensure your wishes are properly documented.

How To Make a POA Legal?

In Kentucky, a Power of Attorney must be officially signed by the principal, the individual granting the authority. While the principal’s signature is necessary, it is highly recommended that the document also be notarized to enhance its validity and provide an additional layer of legal protection. 

Furthermore, individuals are strongly advised to consult with a qualified and skilled estate planning attorney. This can help ensure that the POA adheres to all relevant state regulations and effectively addresses the unique circumstances and requirements of the principal’s situation. Taking these steps can help prevent potential disputes and ensure the principal’s wishes are honored and upheld.

Ready to Plan Ahead? Contact Us Today

At Hoffman Walker & Knauf, we assist Kentucky residents in preparing for the future through tailored legal guidance. If you’re thinking about establishing a Power of Attorney or have questions regarding your existing estate plan, contact us today to arrange a consultation. Taking proactive measures now can ensure peace of mind for many years ahead.