Types of Power of Attorney’s
A power of attorney (POA) is a legal document that grants a designated person the authority to act on behalf of another person in certain circumstances. There are different types of power of attorneys, each with its own purpose and level of authority. In this article, we will discuss the different types of power of attorneys, what they do, and who you should appoint.
- General Power of Attorney A general power of attorney gives a person the authority to act on your behalf in a wide range of legal and financial matters. This type of POA is often used for a specific period, such as when the grantor is out of the country, or is unable to manage their affairs due to a temporary illness or injury. A general POA ends when the grantor revokes it or becomes incapacitated.
- Limited Power of Attorney A limited power of attorney grants a person the authority to act on your behalf for a specific purpose, such as selling a property or managing a bank account. This type of POA is useful if you need help with a particular task, but do not want to give someone unlimited power to act on your behalf.
- Durable Power of Attorney A durable power of attorney is a type of general power of attorney that remains in effect even if the grantor becomes incapacitated. This type of POA is often used in estate planning to ensure that a designated person can manage the grantor's affairs if they become unable to do so.
- Springing Power of Attorney A springing power of attorney becomes effective only when a certain event occurs, such as the grantor becoming incapacitated. This type of POA is often used in estate planning, but can be complicated to execute because it requires a determination of the grantor's incapacity.
- Medical Power of Attorney A medical power of attorney grants a person the authority to make medical decisions on your behalf if you are unable to do so. This type of POA is often used in conjunction with a living will or advance directive, which specifies your wishes regarding end-of-life care.
Who Should You Appoint? Choosing the right person to act as your power of attorney is an important decision. You should select someone you trust and who has your best interests in mind. It is also important to choose someone who is capable of managing your affairs and making decisions on your behalf.
When appointing a power of attorney, it is important to consider the following factors:
- Trustworthiness: You should choose someone you trust to act in your best interests.
- Capabilities: Your POA should have the necessary skills and knowledge to manage your affairs and make decisions on your behalf.
- Willingness: Your POA should be willing to take on the responsibility of managing your affairs and making decisions on your behalf.
- Proximity: Your POA should be someone who is easily accessible in case of an emergency.
A power of attorney is an important legal document that can help ensure that your affairs are managed in accordance with your wishes. There are different types of power of attorneys to consider, each with its own purpose and level of authority. When selecting a POA, it is important to choose someone you trust and who is capable of managing your affairs and making decisions on your behalf.