When it comes to planning for the future, especially for elderly parents, understanding the options and legal tools available is crucial. One of the most important documents in this process is the Virginia Power of Attorney (POA). A POA allows an individual, known as the principal, to appoint someone they trust, referred to as the agent, to manage their affairs on their behalf. This guide will provide an in-depth look at the different types of POAs available in Virginia, their legal requirements, and the steps to create them. To learn more about how to get power of attorney for your senior or elderly parent in Virginia, keep reading below or reach out to the Sunbound team for more information. 

Understanding Power of Attorney in Virginia

A Power of Attorney (POA) is a legal document that gives one person (the agent) the authority to act on behalf of another person (the principal). In the context of senior loved ones, a power of attorney is often used so that an adult child (or other trusted adult) can take care of any number of things on their senior parent’s behalf once their senior parent can longer do it themselves. Oftentimes families will create power of attorney documents while a senior can still handle all their affairs on their own, with the intention that the power document will come into effect once the senior parent has become incapacitated. 

The scope of what is being handled on the seniors behalf will be determined by the power of attorney document, and can cover a wide range of issues. Sometimes the power of attorney will be limited in scope such as when a senior needs someone to help with a discrete transaction like a house or vehicle sale, while other times the grant of authority will be more open-ended, such as when a senior allows another individual to make most medical decisions on their behalf. In Virginia, there are several types of POAs that can be created to cater to various needs. The following are the main types of POAs available in Virginia:

Durable Power of Attorney: This type of POA remains effective even if the principal becomes incapacitated. It usually covers financial and business matters, allowing the agent to manage the principal's finances, investments, and personal assets.

‍Medical Power of Attorney: Also known as an Advance Medical Directive, this document combines a healthcare POA and a living will. It allows the agent to make medical decisions on behalf of the principal and outlines the principal's wishes for medical treatment.

General Power of Attorney: This POA grants the agent broad powers to handle all aspects of the principal's finances. It is not durable, which means it becomes invalid if the principal becomes mentally incapacitated.

Limited Power of Attorney: This POA grants the agent specific, limited powers to handle particular tasks, such as real estate transactions or bill payments. It is also not durable and becomes invalid if the principal becomes mentally incapacitated.

Vehicle Power of Attorney: With this POA, the agent has the authority to make decisions related to the principal's motor vehicles, including registration, transfer of ownership, and other related matters.

Tax Power of Attorney: This POA allows the agent to file the principal's taxes with the Virginia Department of Taxation and handle other tax-related matters.

‍Real Estate Power of Attorney: This POA grants the agent the authority to handle real estate transactions on behalf of the principal, including buying, selling, and managing properties.

Legal Requirements for a Virginia Power of Attorney

To create a valid POA in Virginia, certain legal requirements must be met and for this reason it’s always best to consult with an elder law attorney before drafting or signing a power of attorney document for your elder relative. Generally, in order for a Virgina power of attorney document to be valid the principal must have the mental capacity to create a power of attorney, meaning they must understand the nature and consequences of their actions. The power of attorney should be notarized, even though it is not a legal requirement in Virginia. Notarization strengthens the document and makes it more likely to be accepted by financial institutions. Finally, the power of attorney must be signed by the principal. For durable POAs, the document must explicitly state that it remains effective even if the principal becomes incapacitated.

In addition to the above requirements, it is also advisable that the agent sign the power of attorney or provide a form certifying to the facts contained within the power of attorney document. The power of attorney should also include the specific powers granted to the agent, including the exact transactions or affairs that they will be handling on the senior’s behalf.

Creating a Virginia Power of Attorney

As stated above, the best first step in creating a Virginia power of attorney is to have a discussion with a local elder law attorney to not only ensure that you have satisfied all the legal requirements but also to make sure that you and your senior loved one have thought through all the matters you will be handling on their behalf, and how you will be doing so. Once these things have been decided, the process of creating a Virginia power of attorney is generally as follows:

Choose the type of power of attorney: Determine which type of POA best suits your needs, such as a durable financial power of attorney, medical power of attorney, or limited power of attorney.

Select an agent: Choose a trusted, competent adult to serve as your agent. When selecting an agent, it's important to consider their trustworthiness, competence, and ability to handle the responsibilities associated with the POA. Consider factors such as the person's trustworthiness, geographical location, and ability to handle the responsibilities.  It's also a good idea to name a successor agent who can take over in case the primary agent becomes unavailable.

Draft the power of attorney document: Use software, templates, or hire an attorney to create the power of attorney document. Ensure it includes the specific powers granted to the agent and any relevant limitations or conditions.

Sign and notarize the power of attorney: Sign the POA in the presence of a notary public, who will verify your identity and notarize the document.

Store the original power of attorney: Keep the original POA in a safe, accessible place and inform your loved ones of its location.

Provide a copy to all relevant parties: Give a copy of the power of attorney to your agent so they are familiar with its contents and have it on hand should anyone require the power of attorney documentation for them to do anything on your behalf. Relatedly, it makes sense to distribute the power of attorney to relevant institutions like the land record office, banks, or doctors as they will likely need a power of attorney document to allow someone else to make any decisions on your behalf.

When Does a Virginia Power of Attorney Take Effect and End?

A POA takes effect immediately unless it specifies a future date or event. It automatically ends upon the death of the principal or under certain conditions, such as revocation by the principal, unavailability of the agent, or court invalidation.

In Virginia, if your spouse is named as your agent and either of you files for divorce, the spouse's designation as agent automatically ends, but the POA remains intact with the successor agent taking over.

Creating a Virginia Power of Attorney is an essential step in planning for the future and ensuring that your elderly parents' affairs are taken care of by someone they trust. By understanding the different types of POAs, their legal requirements, and the steps to create them, you can provide peace of mind for your senior parents and ensure their best interests are protected.

To learn more about how Sunbound can help make senior living more affordable for you or your loved one, send us an email at info@sunboundhomes.com or request more information on Sunbound. Sunbound is the best way to pay for senior living and is on a mission to make senior living affordable for everyone.