Almost every client comes into our first conversation with a question. I am going to make a series of blog posts addressing some of the questions that I hear most often. This one is a frequent topic of conversation:
What’s the difference between a power of attorney and a guardianship?
A power of attorney gives authority to someone else – the Agent – to sign your name for you. In order to sign a power of attorney, you have to be over eighteen and legally competent. If you sign a power of attorney, you are still able to make your own decisions and conduct whatever business you choose. The Agent can act in addition to the person.
A guardianship gives someone – the Guardian – legal authority over the incompetent person, called the Ward. If a person is not competent to make their own decisions, or is young, a judge may appoint someone – the Guardian – to have legal responsibility for the incompetent person (called the “Ward”). The Guardian acts instead of the Ward.
A common misunderstanding about what a “power of attorney” is, and what it is not, is often because of the name. People will sometimes mistakenly think that if their family member signs a power of attorney, then the Agent has the “power” to make the family member do what the Agent says. Or that the Agent can prevent the person from taking a specific action. That is not at all true.
A Guardian has the legal authority to make decisions for the Ward, but unfortunately, there is no piece of paper that will bend someone’s will. Any of us who have raised children know that, even though we have legal authority over that child, they most certainly do not do whatever we say. But the Guardian may have great authority over where the Ward lives, what the Ward does, and how the Ward’s money is managed.
This information is just an overview. There are different types of power of attorney and guardianship. Each situation is different, so it takes careful consideration before choosing to pursue either a power of attorney or guardianship, and what type is appropriate.
If you want to discuss which course of action is best for your situation, call me at (501) 295-5248 and schedule a consultation. I don’t charge for initial consultations. Knowledge is power.
