Why do I need a power of attorney in Massachusetts since my spouse and I own all our assets jointly?

A power of attorney is a written instrument by which one person (the principal) designates someone as his or her agent or attorney in fact to perform certain acts. If it is "durable," it continues in effect even if the principal becomes incompetent.

This can be very important if you or your spouse becomes incompetent. It can avoid the appointment of a guardian or conservator for the management of assets. Even if property is jointly owned, signatures of both parties are often required, such as in the transfer of real estate. A power of attorney would allow you to sign for your spouse. Also, it allows you to be the payee of certain items, such as Social Security payments, and it allows you to sign income tax returns on behalf of your spouse.