The Power Of A Power Of Attorney
While asking friends if they had issues registering their cars, we heard one story that I want to share because it again paints flaws in a system where people should have an understanding of military life. It's something that you may run into and need to be prepared for. And it's something that informs us of our rights. The more information we have, the better equipped we are to thrive in this life.
Let's call this couple Cole and Madison (not their real names). Cole and Madison are newlyweds who are just getting assigned to Georgia. Cole has to leave for SERE when they are closing on their house, so he signs a power of attorney over to Madison so that she can sign for both of them. They were super on top of this process and took all the proper steps. It can take a little time to get a POA done, so make sure to do it at least a week or two before your partner leaves. We often can't change the closing date on our house. If we are buying it brand new, there may be some wiggle room, but in a competitive market especially, sellers are looking to close as quickly as possible, and pushing the date more than a week just isn't an option.
Madison was in Georgia for closing, so she was able to sign everything in person rather than having to do it virtually like we did. When she arrived at the closing office, they told her that a POA was not enough because they needed proof that Cole was still alive at the time of closing.
A POA does only give a person the power to sign for someone who is still alive. That is true. What is not true is that the closing attorney would need proof of life on the day of closing. What's the point of getting a POA if we still have to have our spouse find a phone and send a picture holding today's newspaper?
They were fortunate that Cole could access the phone for a few seconds during his portion of SERE. He called the office around 2 a.m. saying, "I'm alive, hope that's enough," and then resumed his training. But that would not have happened if he had been in the survival or interrogation portion. It all worked out. Madison signed for the house, and they have officially settled in Georgia.
But this is once again a scenario where the people in charge should have at least a rudimentary understanding of military life and what we have in place to protect ourselves. Since that doesn't always exist, we have to take it upon ourselves to know our rights. So, let's talk about a couple of different kinds of POA so that you understand what you may need and have the authority to speak about it. So, there are two primary kinds of POAs:
1. General
This gives the spouse (or whatever party has it because it does not have to be a spouse) the right to take any and all action on behalf of the servicemember. This kind is the broadest and easiest to use, but it may not be accepted at all institutions, especially in situations over a specific price point.
2. Special or Limited
This gives the spouse the right to take any and all actions over a specific set of circumstances. This one requires specific information relating to whatever it covers, such as identification numbers. Saying I give my spouse access to my bank account isn't enough information. At the very least, the POA would need to state account and routing numbers.
There's value to both kinds. The general is often discouraged because it does give the spouse total access, but it is the easiest to have. They should have a limited POA on top of it if you are planning for any big-ticket purchases in your absence, such as a car, house, or changing a loan. And real talk, if you don't trust your spouse to have access to your stuff, don't give it to them, and maybe consider marriage counseling or divorce.
We didn't do a POA when my husband first deployed because almost everything is in my name. We weren't planning any big-ticket purchases, and all the utility-type things were either in my name or had me as a primary communicator on the account. We also knew that he would have stable internet access and communication if anything came up where I needed one. We did a specific POA when it looked like he was going on a last-minute deployment because we were in the process of changing our car loan to a different company. Both names were on the loan, which meant we would both need to sign to change it. There are also four different timeline definitions for POAs that are important to know:
1. Regular
Most take effect as soon as they are signed and last until they expire, are revoked, or the grantor (the person giving power) is incapacitated or dies.
2. Durable
This is the same as a regular POA, except it includes particular language that continues the power if the grantor becomes incapacitated.
3. Springing
This one will only take effect when certain events happen and is often used to cover if someone becomes incapacitated. It may or may not have an expiration date.
4. Termination
This POA is strictly created for a certain period of time and automatically expires when that event or time frame ends.
The termination POA is most often used for a deployment and uses the language of a deployment rather than specific dates so that the coverage remains in place even if a deployment is extended. It also means it terminates as soon as the deployment ends, especially if that happens early because some things can get weird if someone tries to sign for themselves when a POA is still in effect. Knowing about all of these is good since you might need POAs even if your spouse isn't deployed. Our lives will go beyond the military one day, but that doesn't mean we'll avoid all the bad stuff, so having things like a springing POA will help protect our wishes if that stuff happens.
It is a crime to sign on someone's behalf after they die because a POA does expire at the time of death. However, anyone working in a closing office should operate under the assumption that the person on the other end is still alive, especially in a military scenario. Sure, Madison could have been attempting to commit fraud. Still, it is more likely that if Cole had died before closing, she either would not have gone through with buying a house in Georgia, where her only reason for being in the state was Cole's military assignment, or she had not yet been informed of his death.
Either way, she would most likely be acting in good faith at the time of closing. I understand that fraud of this kind happens, especially with older clients signing over their rights. Still, our first instinct should not be to look at a young, newly married military couple and assume illegal activity. The POA should have been enough on its own to sign at closing without needing outside verification. They could gather that information once Cole was back home. It is right to expect these people to understand the basics of our situation, and we should be demanding that level of knowledge. Still, if that doesn't happen, we need to be informed of our rights so that we are prepared to encounter whatever may come.