The Facts About Power of Attorney in Oregon

If you live in Oregon and think you may need a power of attorney, it’s important to first understand a few key facts about what a power of attorney in Oregon is and how it works. A power of attorney refers to a legal document that gives another person the power to act on your behalf in case of temporary or permanent incapacity.

At Warren Allen LLP, we want to support you and your family during all stages of life. Our experts are ready to unpack this legal concept so you can make an informed decision about how to best move forward if you (or a loved one) needs a trusted individual to manage finances, healthcare, or real estate. We understand the delicacy of the situation, so we’ve outlined the different types of power of attorney (POA) below and are ready to answer any questions you have regarding your next steps.

What Is a Power of Attorney in Oregon?

A signed power of attorney authorizes another person, called the “agent” or “attorney-in-fact,” to make financial, medical, or property decisions on the behalf of someone who is temporarily or permanently unable to sign necessary documents or make decisions on their own. The agent has the power to act on behalf of the “principal,” the subject of the POA, and can either make broad or limited legal decisions depending on the scope of their authority.

How Does a Power of Attorney Work?

Both the agent and the principal sign the legal document in the presence of a third-party witness. If an agent is given general power of attorney, they are legally able to make decisions on behalf of the principal in all financial matters allowed by the state of Oregon. If they are granted limited or special authority, then the agent can only make decisions on behalf of the principal in special situations or for a specific period of time. For example, if you are getting deployed, you can create a power of attorney for the duration of your deployment. If you set up a limited POA for one year, then the agent’s authorization concludes at the end of a year.

In most cases, a general or limited POA agreement will automatically end if the principal is no longer able to make decisions for themself. If you wish to keep your power of attorney in effect, even if you become mentally or physically incapacitated, you must sign a durable power of attorney. This will allow the agent to continue to act on your behalf even if your mental or physical health declines and you are unable to make decisions. Keep in mind, a principal can still revoke the agreement, and when they die, the power of attorney ends.

Additionally, a POA’s authority can be invalidated by a court if the agent and principal divorce or if an agent is unable to perform the responsibilities of their agreement.

Why Might I Need a Power of Attorney?

A principal may seek a trusted person to look after their health or finances in the event they become incapacitated. This can be due to illness, disability, the effects of aging, dementia, traumatic brain injury, or other impairments that affect a person’s mental capacity. It can also encompass service members who will be deployed and need someone to manage their finances and property while they’re overseas.

Aging parents may plan ahead by naming an adult child as their durable POA. When your mental health declines, and you’re no longer able to make decisions for yourself, your child (or other trusted agent) can make decisions for your healthcare and finances. You can elect to give one child general POA or give limited POA to multiple children, defining specific powers for different individuals.

Conversely, service members may prefer to limit the POA to a set period of time, making the authorization temporary.

What are the Different Types of Power of Attorney?

The two primary POAs are financial power of attorney and healthcare power of attorney (HCPOA).

Financial Power of Attorney

A financial POA gives an agent the authority to manage their financial and business affairs. This can range from paying bills to managing investments. They are required to act in the best interests of the principal and, to the best of their ability, carry out their wishes. Below are some of the key ways an agent can act on behalf of a principal’s financial interests:

• Manage bank accounts—sign checks and make deposits, withdrawals, and changes to beneficiary designations
• Pay bills
• Manage investments and control financial portfolios
• Manage insurance and annuities
• File taxes
• Deposit Social Security checks
• Buy, sell, or lease property

It’s important to note that financial POAs can be categorized depending on their scope of authority:

• General POA: An agent has broad legal authority to manage all finances allowed by the state of Oregon
• Limited POA: An agent is only allowed to manage specific matters outlined in the agreement. This could limit an agent’s authority strictly to their property or the family business. It may even limit their authority to a certain number of years.
• Durable POA: Takes effect when the document is signed and remains in effect even when the principal becomes mentally incapacitated. This is limited to financial affairs, such as paying medical bills. They cannot make medical decisions unless they have an HCPOA.
• Springing POA: Takes effect only when the principal becomes incapacitated. The durable POA “springs” into effect if or when the principal is incapacitated to the level defined within the agreement.

Healthcare Power of Attorney

A healthcare POA, or health care proxy, authorizes an agent to make medical decisions on behalf of the principal. When you are no longer able to make your own healthcare decisions, your agent (typically a relative, spouse, friend, or lawyer) can make decisions about your medical care.

Do I need a Lawyer to Set Up a Power of Attorney in Oregon?

It is wise to seek the counsel of an attorney when setting up your POA. A POA involves some risk since it grants significant authority over your finances or medical care. POA abuse does exist; an attorney will work to protect your best interests as you name your agent.

Only appoint someone you trust, who understands and respects your wishes. Avoid new “best friends” who want to help out by managing your finances. Their aim may be to secure a POA to exploit your finances and act in their own interests by spending money on themselves, making crucial changes to your beneficiaries or retirement plans, or pressuring you to give them more authority. When you are ready, contact our experienced attorneys at Warren Allen LLP. We’ll help you name an agent you trust and protect your interests.