In Texas, a Power of Attorney is a basic tool included in most estate plans.  A  person can give another person authority under a power of attorney to conduct business for them.  This is often done when a person does not want to handle or cannot handle business themselves.  Such circumstances include when a person is traveling out of the country for a long period of time; has become ill or weakened and does not want to deal with financial affairs;  is becoming incompetent or incapacitated; or has too much business to deal with and needs assistance handling different transactions.

There are limited powers of attorney and full powers of attorney.  Common powers that are conveyed through a power of attorney are as follows:

• Real property transactions
• Tangible personal property transactions
• Stock and bond transactions
• Commodity and option transactions
• Banking and other financial institution transactions
• Business operating transactions
• Insurance and annuity transactions
• Estate, trust, and other beneficiary transactions
• Claims and litigation
• Personal and family maintenance
• Benefits from social security, Medicare, Medicaid, or other governmental programs or civil or military service
• Retirement plan transactions
• Tax matters

Texas Springing Powers of Attorney

The Springing Power of Attorney springs forth when a person becomes incapacitated or incompetent.  This type of power of attorney is a good idea for people that have businesses or business matters that may require immediate attention in the event some incident makes them incapacitated.  This allows the person to designate another person that can step up and handle financial affairs in the event of a unforeseen health problem.

This power of attorney should only be given to someone who is trustworthy.

Duty to Act in Best Interest and Duty to Keep Accurate Records under a Power of Attorney

The person holding a power of attorney has the duty to act in the best interest of the person they are holding a power of attorney for as well as to keep accurate records of their actions while using the power of attorney.  Failure to comply with these duties can result in a breach of fiduciary duty lawsuit against the person holding the power of attorney.

The attorneys at Hammerle Finley have advised clients for more than 30 years about the intricacies of estate planning and powers of attorney.