Your Power of Attorney (POA) is a critical document, part of a comprehensive estate plan, granting someone the legal authority to act on your behalf in personal, financial, or medical matters. But what happens when life changes? If your POA is outdated, it may no longer reflect your current wishes or circumstances. Here’s everything you need to know about why and how to update your POA to ensure it still works for you.

Why You Should Update Your Power of Attorney

As life changes, so should your legal documents. A POA that was drafted years ago might not account for major life events or legal shifts. These events may leave you vulnerable if the wrong person holds decision-making power, or worse, if no one has the right authority at a critical time. Updating your POA ensures that the person you trust has the authority to handle your affairs in case you’re unable to. And remember, a POA is not set in stone—you have the ability to revoke, modify, or update it whenever your circumstances change.

Situations that Call for a Power of Attorney Update

There are a few key situations where updating your POA is not just a good idea—it’s essential. Below are some common scenarios that should prompt a review and update of your POA:

1. Change in Marital Status: Whether you’ve recently married or divorced, a change in marital status can dramatically affect your POA. If your spouse was your agent, you may need to replace them or assign new authority to your current spouse. In some states, divorce automatically revokes a spouse’s POA authority, but it’s always better to update your documents to avoid confusion.
2. New Child or Dependent: If you’ve had a child or gained a new dependent, it’s wise to update your POA. While a POA rarely grants someone the authority to act as a guardian for your children, it can be part of your broader estate plan to ensure your financial affairs are in order for their benefit.
3. Change in Agent’s Availability or Capacity: Life happens, and the person you initially designated as your agent may no longer be available or capable of fulfilling that role. Maybe they’ve moved out of state, have health issues of their own, or are simply no longer the person you trust. Updating your POA to reflect a more suitable agent will give you peace of mind.
4. Relocation to Another State: Estate planning laws, including POA laws, vary by state. If you’ve moved to New Hampshire or another state in New England, review and possibly update your POA. What’s valid in one state may not hold up in another, so consulting an attorney to revise your POA in line with local laws is critical.
5. Major Financial or Health Changes: Significant changes in your financial or medical status might also require an updated POA. Whether you’ve acquired new assets, sold a business, or received a diagnosis that affects your ability to manage your affairs, updating your POA ensures the right person has the authority to manage your finances and healthcare.

Do You Need Other Documents?

Sometimes a POA alone may not cover everything you need. For example, if you’re updating your financial POA but also want to ensure healthcare decisions are covered, you might need to draft a separate healthcare directive or living will. These documents work in tandem to ensure your wishes are fully honored.

It’s also important to note that POAs have both advantages and disadvantages depending on your situation. If you’re unsure whether a POA is still the best choice, review the advantages and disadvantages of a POA.

Secure Your Future with Sowerby & Moustakis Law

Estate planning is about more than just dividing assets—it’s about ensuring that your loved ones are cared for and your wishes are honored. By staying proactive, regularly updating your plan, considering tax implications, and addressing your digital assets, you can avoid the common pitfalls that many families face.

Don’t leave your family’s future to chance. At Sowerby & Moustakis Law, we’re dedicated to helping you craft a comprehensive estate plan that reflects your values and protects what matters most. Reach out to us now at 603-554-9249 to schedule a consultation and take the first step toward securing your family’s future.