Thank you Sheldon, for the opportunity to address the General or Durable Power of Attorney. This is a complicated answer to a simple question, but it is an important answer to understand.

The Durable Power of Attorney is at the same time a very important document, a very dangerous document, and at times a useless document.

Let me explain: First, it is very important, because if you get sick and are unable to manage your own financial affairs, you will either need to have an agent appointed by you under a power of attorney, or a Court will appoint a Conservator for you. Most folks would prefer to stay out of Court.

Second, it is very dangerous. If you pick the wrong person to be your agent under your power of attorney, they might abuse the authority you have given them. My old Law School Professor used to call the power of attorney a license to steal. Of course it is illegal to steal using a power of attorney, but you are giving the person the keys to your bank account, your investments, your house and all of your possessions. If you would not trust the person with everything you own, then they are not the right person for the job.

Third, the general power of attorney is sometimes not a particularly useful document. Most folks assume that the power of attorney simply needs to indicate that the person appointed can do anything you can do. This will not work in many situations. Often the document must be very specific about the authority granted. For example, if you want to allow your agent to protect assets from nursing home expenses or protect your spouse or qualify for Veteran benefits, the power of attorney must specifically authorize the detailed techniques necessary to accomplish these things.

So back to the original question, how much does it cost? The answer is that it does not cost that much, but this is not something you should price shop. Any attorney can draft a power of attorney or you could get one on-line. But, all power of attorneys are not created equal. The vast majority of general powers of attorneys do not allow your agent to do the things necessary to protect you and your hard earned savings from being lost to nursing home poverty. Why, because most attorneys have never filed a nursing home Medicaid application. If you want a power of attorney to do all of the things that most people want it to do, you need to meet with an attorney that frequently files Medicaid applications and Veteran benefit applications. Will it cost you a little bit more? Yes, but it could save you tens of thousands of dollars in the long run. Also, you will most likely need an up to date Health Care Advocate and a HIPAA waiver. These are all very important documents if you get sick.