Seven Common Myths About Powers of Attorney in Arkansas

Powers of attorney are some of the most valuable estate planning tools available, but they are also some of the most misunderstood. Many people assume they only need a power of attorney later in life or believe their spouse or adult children can automatically make decisions for them if something happens. Under Arkansas law, those assumptions are not always correct.

A properly drafted power of attorney allows you to appoint someone you trust to act on your behalf if you are unable to manage your own affairs. Taking the time to create one now can help your family avoid unnecessary legal complications in the future.

Here are some of the most common myths about powers of attorney and the truth behind them:

Myth #1: Powers of Attorney Are Only for Seniors

Many people think powers of attorney are only necessary for older adults. In reality, every adult should consider having one. No one expects to experience a serious accident or illness, but unexpected events can happen at any age.

If you become unable to manage your finances or make healthcare decisions for yourself, a power of attorney allows the person you have chosen to step in and help. Creating a power of attorney is not about preparing for old age, it is about preparing for life's unexpected moments.

Myth #2: I Only Need One Power of Attorney for Both My Finances and Healthcare

Under Arkansas law, you must use two separate documents to appoint someone to handle your affairs: a Financial Power of Attorney and a Healthcare Power of Attorney.

You can appoint a separate agent (the person who you want to handle your affairs) for your financial decisions and for your healthcare decisions, or the agent can be the same person.

You can read the Arkansas law on healthcare powers of attorneys here: Arkansas Code § 20-6-103

Furthermore, financial powers of attorneys in Arkansas are governed by the Uniform Power of Attorney Act, which can be found here:  Arkansas Code § 28-68-101

Myth #3: My Spouse Can Automatically Make Decisions for Me

Many married couples assume they can automatically make all decisions for one another if something happens. Under Arkansas law, that is not always the case.

In some situations, yes a spouse may be able to make healthcare decisions for an incapacitated patient if no healthcare power of attorney or advance directive is in place.

However, your spouse does not automatically have authority to make financial or legal decisions on your behalf. Those decisions generally require a valid power of attorney or, in some cases, a court-appointed guardian. 

Without a valid financial power of attorney, your spouse may not be able to access accounts held solely in your name, sign legal documents, sell property, or complete other financial transactions for you.

Creating both a healthcare power of attorney (also called a medical power of attorney or healthcare proxy) and a financial power of attorney allows you to clearly identify who should make decisions for you and avoid uncertainty for your family.

Myth #4: Signing a Power of Attorney Means I Give Up Control

One of the biggest concerns people have is that signing a power of attorney means someone else immediately takes control of their finances or healthcare decisions. That is simply not true.

Under Arkansas law, a healthcare power of attorney does not become effective until you are incapacitated, unless the document specifically grants immediate authority to your agent. Financial powers of attorney may take effect immediately or become effective only upon your incapacity or some future date, depending on the language in the document. Further, even if an agent has immediate authority to act on your behalf under your power of attorney, this does not mean you give up the right to make decisions on your own behalf.

As long as you have the legal capacity to make your own decisions, you have the right to make healthcare and financial decisions for yourself. You also have the right to revoke or update your power of attorney at any time.

Myth #5: My Agent Can Do Whatever They Want

Choosing someone as your agent does not give them unlimited authority. Arkansas law places important responsibilities on anyone acting under a power of attorney.

An agent has a fiduciary duty to act in good faith, act within the authority granted in the document, and act in the best interests of the person who appointed them. In other words, your agent cannot simply do whatever they want. They are legally required to act responsibly and in accordance with your wishes.

Myth #6: My Children Can Automatically Step In If Something Happens

Many parents assume their adult children can simply take over if they become incapacitated. Unfortunately, that is not how the law works.

Without a valid power of attorney, your family may have to petition the court for a guardianship before they can legally manage your finances or make medical decisions on your behalf. That process can take time, create additional expenses, and place added stress on your loved ones.

Myth #7: A Power of Attorney Continues After I Die

A power of attorney only remains effective during your lifetime. Once you pass away, your agent's authority ends. Responsibility for administering your estate then passes to the executor named in your will or the personal representative appointed by the probate court. A power of attorney cannot be used to distribute assets, sell estate property after death without proper authority, or administer an estate.

Planning Ahead Can Protect You and Your Family

A power of attorney is more than just another legal document. It gives you the opportunity to choose someone you trust to manage your financial and medical affairs if you are ever unable to do so yourself. Having a properly drafted power of attorney in place can help your loved ones avoid unnecessary court proceedings, reduce stress during difficult times, and ensure your wishes are carried out according to Arkansas law.

Need Help Creating a Power of Attorney?

Whether you are creating your first estate plan or updating documents you've had for years, at ARlaw Partners we can help you prepare a powers of attorney that reflect your wishes and comply with Arkansas law.

Contact ARlaw Partners today to schedule a consultation and learn how thoughtful estate planning can help protect you and your loved ones ones through thoughtful estate planning.

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