Power of Attorney Laws in Tennessee
Tennessee has no state income tax on earned income, repealed its estate tax in 2016, and allows small estate affidavits for estates under $50,000. A power of attorney is a critical planning document that allows you to designate a trusted person to make financial or healthcare decisions on your behalf if you become incapacitated. Tennessee has specific statutory requirements for the creation, execution, and scope of powers of attorney. Understanding Tennessee's specific requirements ensures your power of attorney will be recognized and enforced when you need it most.
Financial Power of Attorney in Tennessee
A financial (or durable) power of attorney in Tennessee authorizes your agent to handle financial transactions, manage investments, pay bills, file tax returns, and conduct other business on your behalf. Tennessee may have adopted the Uniform Power of Attorney Act or have its own statutory form that is widely accepted by banks and financial institutions. Using Tennessee's statutory form or language can help ensure that third parties readily accept your agent's authority.
Healthcare Power of Attorney in Tennessee
A healthcare power of attorney (also known as a healthcare proxy or medical power of attorney) in Tennessee designates someone to make medical decisions for you if you cannot communicate your wishes. This document works alongside an advance directive or living will, which states your preferences for end-of-life care. Tennessee may have specific statutory forms and witnessing requirements for healthcare directives. It is important that your healthcare agent understands your values and preferences regarding medical treatment, and that your documents comply with Tennessee's specific legal requirements to ensure they are honored by healthcare providers.
Choosing Your Agent in Tennessee
The person you choose as your agent under a power of attorney has significant authority over your affairs, making this one of the most important decisions in your estate plan. Your agent should be trustworthy, organized, and able to act in your best interests even under difficult circumstances. Tennessee may impose specific duties and liabilities on agents, including fiduciary obligations and reporting requirements. Consider naming a successor agent in case your primary choice is unable or unwilling to serve. An experienced Tennessee attorney can help you understand the responsibilities involved and draft appropriate provisions to protect your interests.