Types of Power of Attorney

Power of Attorney is a written document in which one person, the principal, appoints another person or people, the agent or attorney-in-fact, to legally act on his or her behalf. Most POA’s are “durable”, which means they remain active after you become incapacitated. All POA’s are revocable at any time, unless stated otherwise. All expire upon your death. Power of Attorney requirements vary by state.

• Limited Power of Attorney. Someone acts for you in specific situations. You can limit the time frame or scope of that responsibility, say, signing documents while you are out of the country or only trading stocks. This type of POA expires when the stated event occurs, you revoke it, or when you die. You can’t grant power of attorney for certain matters, including to create or make a will, to serve jail time or to vote.
• General Power of Attorney. This grants broad authority to your agent. If you draft it to be durable, or if your state presumes it to be durable, it continues even after doctors deem you to be mentally incapacitated. It usually relates to financial matters. Your agent can sign transactions for you and make decisions about your affairs, including those related to banking and investing; managing, buying and selling property; filing income taxes; giving monetary gifts; changing your living situation; and hiring people to care for you.

 That POA is intended to be used only if you no longer want to manage your affairs or can no longer do so. You might feel safer drafting your POA to trigger, or spring, your incapacity, but your agent is more likely to get cooperation from banks and brokerages if it’s drafted to be made effective immediately.

• Health Care Power of Attorney. Some states permit you to grant a power of attorney for medical decisions on your behalf. Others instead allow you to designate an agent or “health care proxy” for that purpose.

Our goal is to provide each of our clients with as much information as possible about types of Power of Attorney. Many legal aspects may be complex and confusing. We want you to know we are available to speak with you. If your affairs are complicated or if you are unsure, a consultation with Spiegel & Utrera, P.A. is recommended. We have taken the time to develop easy to understand kits which enable you to obtain these important legal documents for a fraction of what a visit to a lawyer’s office would cost for the same services.

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