Power of Attorney in Ohio: Understanding Your Options
What Is a Power of Attorney?
A power of attorney (POA) is a legal document that allows you to name someone, called an agent or attorney-in-fact, to make decisions on your behalf if you become unable to do so yourself. Powers of attorney are one of the most important, yet often overlooked, pieces of a complete estate plan. Without one, your family may need to go through a costly and time-consuming guardianship proceeding if you become incapacitated.
Types of Power of Attorney in Ohio
- Durable Financial Power of Attorney: Allows your agent to manage finances, pay bills, and handle property even if you become incapacitated
- Healthcare Power of Attorney: Authorizes your agent to make medical decisions on your behalf when you cannot communicate your wishes
- Limited or Special Power of Attorney: Grants authority for a specific transaction or time period, such as selling a home while you are out of state
- Springing Power of Attorney: Only becomes effective upon a triggering event, such as a doctor certifying incapacity
Choosing the Right Agent
Your agent should be someone you trust completely, who is organized, and who is willing and able to act in your best interest. Many people choose a spouse, adult child, or close family member. It’s also wise to name a backup agent in case your first choice is unavailable when needed. Ohio law does not require your agent to be a relative, so you can also choose a trusted friend or professional fiduciary.
Common Mistakes to Avoid
- Waiting too long to create a POA, since it must be signed while you have legal capacity
- Failing to update the document after major life changes like divorce or the death of an agent
- Not clearly specifying the powers granted, which can create confusion for banks or medical providers
- Choosing an agent based solely on birth order or feelings of obligation rather than trustworthiness
Why You Shouldn’t Wait
A power of attorney only works if it’s signed before it’s needed. Once someone is deemed legally incapacitated, it’s too late to create one, and family members may have to petition a probate court for guardianship instead, which is far more expensive and time-consuming. At Yonas & Phillabaum, we help clients throughout the Cincinnati area put durable, properly drafted powers of attorney in place as part of a complete estate plan.
Can a Power of Attorney Be Revoked?
Yes. As long as you have legal capacity, you can revoke or change a power of attorney at any time by signing a written revocation and notifying your agent and any institutions relying on the document, such as banks or healthcare providers. It’s a good idea to review your POA periodically, especially after major life events, to make sure it still reflects your wishes and current relationships.
Pairing a POA With Other Estate Planning Tools
A power of attorney works best as part of a broader estate plan that may also include a will, a healthcare directive or living will, and in some cases a trust. Together, these documents ensure that your wishes are honored both during your lifetime, if you become incapacitated, and after your death, giving your family clear guidance and reducing the chance of costly disputes.
