A power of attorney is a legal document where a principal (you) appoints an agent or attorney-in-fact to act on their behalf. In Kentucky, powers of attorney are durable unless stated otherwise. ‘Durable’ means a power of attorney remains effective no matter your disability or mental incapacity.

A durable power of attorney assigns broad powers to the agent so they can act entirely on your behalf. These powers include:

• • Financial affairs

• • Fiduciary obligations

• • Retirement plan management

• • Real estate transactions

You can also execute a limited power of attorney, which limits powers to a group of transactions (like financial matters) or a single transaction (business purchase).

Another type of power of attorney allows you to appoint an agent to communicate your medical treatment preferences when you cannot do so. It is called a living will or health care power of attorney.

Consider your agent choice carefully. You need to choose someone you trust to act in your best interest. Many people choose their spouse, partner, close friend, or business associate to fulfill this role. Consider selecting a successor agent in case your primary choice cannot perform the duties listed in the power of attorney in the future.

If you want your agent to act on your behalf in all things, assign broad powers to them so they can complete those transactions. You do not want to limit authority so much that they cannot accomplish needed tasks. Another approach is to appoint two agents and assign them different responsibilities based on expertise. For example, you may want your spouse to manage personal bank accounts, choose your children’s daycare, and pay your home mortgage while your business partner manages operations and makes significant business purchases.

Before you sign a power of attorney, find two witnesses who can sign it with you. These individuals cannot have any interest in your estate as a beneficiary. If you hire a law firm, your attorney’s staff members will act as your witnesses.

Besides witnesses, state law also requires your power of attorney to contain a notary acknowledgment. Since it can be challenging to schedule your witnesses and notary simultaneously, consider hiring a mobile notary who can visit your home or office. If you go through a law office, they will have a notary public on staff.

Once you find witnesses and a notary public, you can sign your power of attorney. They will need to see you sign it, and then they will add their signatures and acknowledgments.

Once finished, make copies of your financial power of attorney and provide them to your agent, loved ones, and anyone else affected by its contents. Store the original in a safe deposit box or fireproof locking file cabinet. Let your agent know where you keep the original.

If you decide to revoke the financial power of attorney, you may do so by executing a new power of attorney, signing a revocation of power of attorney, or destroying the document.