St. Mary’s County Powers of Attorney Lawyers

A sudden illness, an unexpected accident—life can change in an instant. In those moments, when you or a loved one might be unable to communicate, a critical question arises: who will manage your financial affairs and make vital healthcare decisions on your behalf? For many families in St. Mary’s County, from Leonardtown to Lexington Park, this is a daunting thought. Without a clear plan, your loved ones could face a stressful, public, and expensive court process to gain the authority to help you.

What is a Power of Attorney in Maryland?

A Power of Attorney, often abbreviated as POA, is a legal document that allows one person, known as the “principal,” to grant another person, called the “agent” or “attorney-in-fact,” the authority to make certain decisions and take actions on their behalf. The scope of this authority can be broad, covering all of your financial and healthcare matters, or it can be limited to specific tasks.

This document is not about giving up control. Instead, it is about creating a plan for a time when you might be incapacitated and unable to manage your affairs. By proactively choosing your agent, you ensure that someone you know and trust is in a position to protect your interests, rather than leaving these important decisions to a court-appointed individual who does not know you or your values.

The Two Pillars of Planning: Financial vs. Healthcare Powers of Attorney

In Maryland, planning for incapacity generally involves two distinct documents that cover the two main areas of your life: your finances and your health.

The Durable Power of Attorney for Finances

This document empowers your agent to manage your property and financial matters. It is a powerful tool that allows for the seamless continuation of your financial life if you become unable to handle it yourself. The authority granted can be tailored to your specific needs, but often includes the power to:

• Access bank accounts to pay bills and manage daily expenses.
• Buy, sell, or manage real estate.
• File and pay taxes.
• Manage investments, including stocks, bonds, and retirement accounts.
• Handle business operations.
• Apply for public benefits, such as Medicaid or Veterans benefits.

The Advance Medical Directive (Healthcare Power of Attorney)

This document addresses your medical care. It allows you to appoint a healthcare agent to make decisions on your behalf if you are unable to communicate your wishes. This person becomes your advocate, ensuring that medical professionals follow your values and preferences. An Advance Directive in Maryland typically combines two functions:

• Appointment of a Healthcare Agent: You name the person you trust to speak with doctors, consent to or refuse medical treatments, and access your medical records.
• Living Will Provisions: This section allows you to state your wishes regarding end-of-life care. You can provide instructions about the use of life-sustaining treatments, such as mechanical ventilation or tube feeding, ensuring your personal values are honored.

What Does “Durable” Mean and Why is it Important?

The word “durable” is one of the most significant terms in this area of law. A standard, non-durable Power of Attorney automatically terminates if the principal becomes incapacitated. This makes it unsuitable for planning for a long-term illness or injury.

A Durable Power of Attorney, however, remains in effect even after the principal loses the capacity to make decisions. In Maryland, a Power of Attorney is presumed to be durable unless the document explicitly states otherwise. This durability is what makes the document an effective tool for incapacity planning. It ensures your chosen agent can step in and help exactly when they are needed most, without any interruption in their authority.

When Does a Power of Attorney Become Effective?

As the principal, you have control over when your agent’s authority begins. There are two primary options:

• Immediately Effective Power of Attorney: The agent’s authority begins the moment you sign the document. This is often preferred for its simplicity and efficiency. It does not mean you lose control; you can still manage your own affairs. It simply means your agent also has the authority to act on your behalf if needed. This can be convenient if you need assistance with financial matters due to travel or minor health issues.
• Springing Power of Attorney: The agent’s authority only “springs” into effect upon the occurrence of a specific event, which is almost always a determination by one or more physicians that you have become incapacitated. While this may seem safer, it can create delays in a crisis. Your agent may have to wait for official medical documentation before they can access accounts to pay for your care, potentially causing logistical and financial problems.

What Authority Can Be Granted to an Agent?

The powers you grant to your agent should be clearly defined within the document. A well-drafted Power of Attorney will be specific and comprehensive to avoid any ambiguity.

Common Financial Powers Include:

• Real Property Transactions: Buying, selling, leasing, or mortgaging real estate.
• Banking and Financial Transactions: Opening or closing accounts, withdrawing funds, and cashing checks.
• Stocks and Bonds: Managing your investment portfolio.
• Business Operations: Continuing the operation of a small business.
• Insurance and Annuities: Purchasing policies and managing claims.
• Retirement Plans: Making decisions regarding your IRA, 401(k), or other pension plans.
• Tax Matters: Preparing and filing tax returns and communicating with the IRS.
• Gifting and Transfers: Making gifts to family members or charities, a power that must be explicitly stated.

Common Healthcare Powers Include:

• Consenting to or refusing medical procedures, treatments, and surgeries.
• Choosing or discharging healthcare providers and facilities.
• Accessing and releasing your protected medical information (HIPAA release).
• Making decisions about organ donation and final arrangements.
• Applying for medical benefits on your behalf.

The Responsibilities of an Agent: A Fiduciary Duty

Serving as an agent under a Power of Attorney is a role of immense trust and responsibility. Your agent is legally considered a “fiduciary.” This means they have a strict duty to act in your best interest at all times. This fiduciary duty includes several key obligations:

• Duty of Loyalty: The agent must act solely for your benefit and avoid any conflicts of interest. They cannot use your assets for their own personal gain.
• Prudent Management: The agent must manage your finances carefully and responsibly.
• Record Keeping: The agent must maintain detailed records of all transactions made on your behalf and be prepared to provide an accounting to you or a court if requested.
• Separation of Assets: The agent must keep your property separate from their own. Commingling funds is a serious breach of fiduciary duty.

How Do You Choose the Right Agent?

Selecting the person who will serve as your agent is one of the most important decisions in the estate planning process. This person should not only be trustworthy but also capable of handling the responsibilities. Consider the following qualities:

• Trustworthiness and Integrity: This is the most vital attribute. Choose someone who you are confident will always act in your best interest.
• Financial Responsibility: Your financial agent should have a history of making sound financial decisions for themselves.
• Assertiveness: Your healthcare agent must be able to advocate for you in a medical setting, communicating your wishes clearly and firmly to doctors and hospital staff.
• Willingness to Serve: Always discuss your intentions with your proposed agent to ensure they are willing and able to take on the role.
• Proximity: While not always necessary, having an agent who lives nearby can make managing day-to-day tasks easier.

It is also wise to name at least one successor agent who can step in if your primary choice is unable or unwilling to serve when the time comes.

The Dangers of Not Having a Power of Attorney

If you become incapacitated without a Durable Power of Attorney, your family cannot automatically assume control of your finances or make medical decisions for you. Instead, they will be forced to petition the Orphans’ Court in St. Mary’s County to have a guardian appointed for you. This process, known as a guardianship proceeding, has significant downsides:

• Public: The entire process is a matter of public record, exposing your personal and financial situation.
• Expensive: It involves court costs, filing fees, and attorney’s fees, all of which are paid from your assets.
• Time-Consuming: It can take months to have a guardian appointed, leaving your affairs in limbo during a critical time.
• Loss of Choice: A judge, not you, will decide who is appointed to manage your life. While the court often appoints a family member, it is not guaranteed.

A Power of Attorney avoids this entire process, keeping your affairs private, saving money, and ensuring your chosen representative is empowered to act immediately.

Special Considerations for St. Mary’s County Residents

The unique character of our community presents specific planning needs that a generic, one-size-fits-all document might overlook.

• Military Families: Naval Air Station Patuxent River is a cornerstone of our community. For active-duty personnel and their families, frequent relocations and deployments make a Power of Attorney essential. A properly drafted plan can ensure a spouse or trusted family member can manage household affairs, handle financial matters, and care for children while a service member is deployed.
• Small Business Owners: The many family-owned businesses in Leonardtown, Lexington Park, and across the county require a plan for continuity. A Power of Attorney can grant an agent the authority to make payroll, pay vendors, and manage daily operations, preventing the business from faltering if the owner becomes incapacitated.
• Agricultural and Farming Families: Farming is a deep-rooted part of St. Mary’s County’s heritage. A Power of Attorney for a farm owner should include specific provisions authorizing an agent to manage farm operations, sell crops or livestock, and handle other agricultural business matters.

Can a Power of Attorney Be Changed or Revoked?

As long as you are mentally competent, you have the absolute right to change or revoke your Power of Attorney at any time. To do so effectively, you should take the following steps:

• Create a Written Revocation: Sign and date a written statement declaring that you are revoking the document.
• Notify Your Agent: Deliver a copy of the written revocation to your current agent.
• Notify Institutions: Provide copies to any banks, financial institutions, or healthcare providers who have a copy of the original POA.

If your Power of Attorney was recorded with the county land records office, you should also record the revocation. Creating a new Power of Attorney typically includes language that revokes all prior versions.

Contact Our St. Mary’s County Power of Attorney Lawyers

Planning for the future is one of the most important steps you can take to protect yourself and your family. A well-crafted Power of Attorney provides a clear, private, and effective way to ensure your wishes are followed and your affairs are managed by someone you trust. The Baddour Law Firm is committed to helping individuals and families throughout St. Mary’s County and Southern Maryland build comprehensive estate plans tailored to their unique needs. We take the time to listen to your concerns, explain your options, and draft documents that provide security and confidence for the years ahead. 

To schedule a confidential consultation, please contact us today at (301) 494-2108 or through our online form.