Although Tel-Law information is periodically reviewed, it is important for you to realize that changes may occur in this area of law. This information is not intended to be legal advice regarding your particular problem, and it is not intended to replace the work of an attorney.

If you do not have an attorney, the Oregon State Bar Lawyer Referral Service can help you. Online Lawyer Referral Service information and a fill-in form is available. Or you may contact the service by phone: The number to call from the Portland area is 503-684-3763 or toll-free from anywhere else in Oregon, 1-800-452-7636.

The following information regarding legal decision making tools is brought to you as a public service by the lawyers of the State of Oregon. The material presented is general legal information intended to alert you to possible legal problems and solutions.

Do you ever wonder who will handle your money and affairs if you get sick or if you become disabled and cannot do these things for yourself? You might expect that a spouse or other family member automatically has the power to do what is necessary. But this is not true. Under Oregon law, someone must have special authority to act for another person. This special authority is almost always created by a document of some kind. This document is written and signed in advance by the person giving the authority, before the person needs help.

The most common document is called a power of attorney. There are two basic types of powers of attorney: specific powers and general powers. You can use a specific power of attorney to give someone else the legal authority to do one particular type of business. For example, a parent might sign a power of attorney at the bank to give an adult child the authority to make deposits and write checks on a specific bank account. A general power of attorney can be used to authorize a trusted relative or friend to handle a wide range of business, including banking, buying and selling property and making investments. The document itself states whether the powers it authorizes are specific or general.

If you sign a power of attorney, you are not giving up the power to continue conducting the same transactions yourself. You still have the authority to handle your own business, but now the person named in the document can make decisions too. The authority given in a power of attorney automatically ends when the person who signed it dies. You can end the authority earlier by revoking it in writing. In some cases, the document itself contains an ending date, after which the authorization automatically ends.

Forms for powers of attorney are available from many sources. This is both good and bad. It is easy to buy an inexpensive form from a stationery store or to sign a form provided by a bank. It is not necessary to have a lawyer involved.

Unfortunately, some people sign the forms without understanding what they mean. It is important to understand that the person named in the power of attorney can make decisions with serious financial consequences in all of the areas listed in the document. That person will have no authority to act in an area that is not listed. A printed form may include too much power or too little power, depending on the individual circumstances. In addition, a power of attorney can be abused. Dishonest people may use this type of document to get control of other people's money or property. For this reason, it is a good idea to talk to a lawyer first if you plan to sign a power of attorney. The lawyer can help you decide what is needed. The lawyer may suggest the use of a printed form, perhaps adding language to limit or expand the powers in the form; or the lawyer may suggest a custom document. In more complicated situations, the lawyer may offer another option such as a trust. For more information about trusts, read What is a trust?

Someone who is not able to understand what the power of attorney does cannot sign the document, for example, someone who is in a coma, or who has advanced dementia. If you have given a power of attorney while able to understand what it does, the power of attorney will still be valid if you later become unable to understand.

For the person who is no longer able to understand enough to sign documents, other legal tools are available. For example, the Social Security Administration and the Veterans Administration can appoint a representative payee to receive and handle the benefit checks on behalf of a person who is mentally or physically unable to handle the money. The agencies generally will consider handling the person's benefits this way only after being notified that the person is having a problem handling the money himself or herself; the agencies are required to investigate any report about the person's inability to handle the funds before they arrange for a representative.

The power of a representative payee is limited to managing another person's Social Security benefits. If the person has other money or property that he or she cannot manage, it may be necessary for a state court to appoint a conservator or a guardian. A conservator handles only finances; one is appointed by the court if the person owns a house or other property that needs management or protection. A guardian, on the other hand, generally makes decisions abut health care and other personal matters, but not about significant financial matters. A guardian must honor a person's advance directive for health care. A person for whom a conservator or guardian has been appointed loses control over his or her own finances.

After a petition for conservatorship or guardianship is filed with the court, notices and copies are given to the affected person and mailed to close relatives. If the person objects orally or in writing within 15 days, the court will hold a hearing to determine whether a guardianship is really needed. If there are no objections, the judge generally signs the order, appointing as conservator or guardian the person who asked for those powers.

A conservator or guardian is usually given broad authority. A conservator is required to give a financial bond to guarantee that money or property will not be misused. Both a conservator and a guardian have to make a written report to the court once a year.

Conservatorships and guardianships can be created over minor children and their property, too. In those cases, different rules and procedures apply than the ones for adults described in this topic.

This information is from the Oregon State Bar's Tel-law service, a collection of recorded legal information messages prepared by the lawyers of Oregon. In addition to being online, the Tel-law service is accessible by telephone at 503-620-3000 or toll-free in Oregon only, 1-800-452-4776. A touch tone phone allows direct access 24 hours a day, 7 days a week. To receive a free Tel-law brochure listing the subjects available call 503-620-0222, ext. 0.