While you are away serving a mission, there are a lot of things that probably flash across your mind that may need to be taken care of. And, as you can expect, there are going to be things that you didn’t know would need to be dealt with that will come up. Some people may hesitate to serve because of concerns they have about this.

One way to overcome this concern is to name a trusted person as your Power of Attorney. They will be able to support you by taking care of things at home allowing you to focus on serving.

What is a Power of Attorney?

A Power of Attorney is a legal document that names someone to act as your legal representative. The person who is granted the authority is called the agent. The person granting this authority is called the principal. With few limitations, the agent can take care of your affairs while you are away.

Types of POAs

POAs can be categorized by: timing they go into effect and the scope of decision-making authority granted in them.

Timing: Durable

Durable powers start once the documents is signed and continue until the death of the principal. Even if the principal becomes disabled, the agent maintains their authority.

Timing: Springing

Springing POAs don’t go into effect until certain conditions are met. Disability is a common condition used to “spring” these powers into effect.

Scope: Limited

These types of powers can be limited by time, transaction, or scope of affairs. An example would be in a real estate transaction. You could name someone to complete a real estate purchase or sell for you, and they have the power only to complete that deal.

Scope: General

This grants the agent all the powers to act in your behalf as allowed by law, no limits are spelled out in the document.

Risks

One big risk I have run into is that some financial institutions will only accept certain types of powers. This is because financial institutions don’t have the resources to monitor what an agent with limited authority does. The institution doesn’t want to be liable for an act an agent does that they don’t have the authority to do.

Because of the broad authority you may be granting someone over your affairs, it is important to choose someone who is trustworthy and competent. You want them to support you, not make things harder to serve.

Conclusion

While you are away serving a mission, there will be times having a trusted person with Power of Attorney will be helpful. They will support your focus on serving. Getting competent legal advice in this area to help you draft the right POA type and checking with your financial institutions on what types they accept will go a long way in having things setup for a smooth mission experience.

Alan B Faerber CFP® CRPC®