Power of Attorney in Louisiana: All You Need to Know

Drafting an effective power of attorney in Louisiana can protect your estate and personal affairs against chaos. Knowing how these legal documents work can prevent other people from making decisions that conflict with your interests. Creating this document with an estate planning attorney can help you inform your family of your wishes and help them manage important decisions if needed.

Types of Powers of Attorney

Louisiana offers several different types of powers of attorney, each designed to address specific needs. Some powers of attorney grant general authority to the agent. This can include handling financial transactions, managing property, and making legal decisions. This document allows the agent to review many different aspects of the principal’s affairs.

Some powers of attorney end once the principal becomes incapacitated. Others stay in effect even if the principal becomes unable to make their own decisions due to mental or physical ailments. These types of legal documents are important for long-term planning, especially in cases involving aging or chronic illness.

Other forms only grant permission to certain areas. Some documents allow the agent to make medical choices for the principal, including allowing them to undergo surgery or different treatment options. These types of power of attorney provide a way for people to appoint others to manage different aspects of their lives in a legally enforceable way.

Roles and Responsibilities of the Agent

The agent assumes several responsibilities when accepting their appointment. Primarily, the agent has to prioritize the principal’s needs above their own. They have to pay attention to detail and must understand the principal’s wishes by doing the following:

• Act in the principal’s interests. This means they have to make decisions that align with the principal’s preferences and values, not the agent’s personal views. The agent has to evaluate decisions and disclose any potential conflicts of interest. When in doubt, the agent might have to seek professional guidance to keep the decision ethical.
• Obey the level of authority given to them. The agent has to thoroughly examine the scope of their powers as outlined in the document. They cannot exceed the powers given to them or act in an area outside of their authority. Regular review of the power of attorney document prevents the agent from acting in a way that could be legally challenged.
• Keep accurate records. This includes keeping detailed documentation of all financial activities, including receipts, invoices, and bank statements. The agent should keep organized files and record the reasoning behind serious decisions they made. They could be requested to provide additional details if requested by the principal or the court.
• Avoid exploitation. The agent has to keep their own finances and the principal’s assets separately. They cannot blend funds, borrow money from the principal’s accounts, or give themselves things without explicit permission from the principal. All decisions have to be transparent and be to the principal’s benefit.
• Communicate and provide updates. Regular communication can keep the relationship between an agent and the principal transparent and maintain trust. The agent should keep the principal informed about serious decisions they made and any challenges that arise. If direct communication isn’t possible, updates should be provided to other authorized family members or representatives.
• Step down if necessary. The agent has to be honest about their responsibility to continue serving effectively. If personal circumstances, health issues, or other factors prevent the agent from doing their job, they should formally resign to allow the appointment of someone else to protect the principal’s interests.

Failing to fulfill these duties can result in legal consequences. An agent can be removed and could be susceptible to civil liability or criminal charges. Agents should review their obligations with attorneys with legal professionals so that they understand their responsibilities, especially if there are complicated decisions involved.

FAQs

Q: Who Can Act as an Agent Under Power of Attorney in Louisiana?

A: Those who can act as an agent under power of attorney in Louisiana include any trusted adult chosen by the principal or the person who is creating their power of attorney. The agent can be a family member, friend, or professional, but they must be able to handle the responsibility of being an agent. The principal needs to review the duties with the agent to make sure they can handle the workload.

Q: What Are the Different Types of Power of Attorney in Louisiana?

A: The different types of power of attorney in Louisiana include broad and specific powers of attorney. There are general powers of attorney that give almost complete authority to the agent, covering financial, legal, and personal affairs. Other forms of power of attorney only allow the guardian to control certain elements of the individual’s life, like healthcare decisions, financial decisions, and legal matters.

Q: How Does a Power of Attorney Differ From Guardianship in Louisiana?

A: A power of attorney differs from guardianship in Louisiana because power of attorney is voluntary. The principal has to appoint the agent themselves. With guardianship, a court-ordered process is required, and a guardian is appointed on behalf of the individual who cannot make decisions themselves. With a power of attorney, the principal keeps control as long as they are still of sound mind. Guardianship removes the authority from the individual.

Q: Can a Power of Attorney Be Changed in Louisiana?

A: A power of attorney can be changed in Louisiana as long as the principal is competent enough to do so. To change a power of attorney, a signed and written document that states they want to revoke a power of attorney is required. The principal has to inform the agent and any other parties involved to avoid future issues. A new document usually has to be created to outline these changed details.

Take Charge of Your Future

Creating a power of attorney can amplify your voice when it matters most. Failing to prepare one can put you at risk of losing control over your affairs. If you act quickly, you can give your loved ones the guidance they need. Schedule a consultation with Goode Tax and Estate Planning Law Group, LLC today to create a power of attorney tailored to your needs.