5 Types of Powers of Attorney
A Power of Attorney is a legal document which allows someone to act on your behalf.
- A Healthcare Power of Attorney allows your attorney-in-fact or agent to make health and medical care decisions.
- A Financial Power of Attorney allows your attorney-in-fact or agent to make financial decisions.
- A Durable Power of Attorney remains in effect if the principal becomes incapacitated. It can be used to allow your agent to manage all of your affairs. A Non-durable Power of Attorney is normally set for a period of time and usually for a specific transaction.
- A Special or Limited Power of Attorney is typically used for one-time financial transactions.
- A Springing Power of Attorney becomes effective if you become incapacitated or are no longer able to make decisions. An Immediate Power of Attorney grants the power to the attorney-in-fact or agent immediately upon execution of the document.
Depending on your needs, your provider lawyer can help you understand which type of Power(s) of Attorney you may need. Each state has laws governing Powers of Attorney. Join LegalShield today and contact your provider law firm for assistance.
Choose the Best Power of Attorney to Fit Your Needs
While a quick Google search may make it seem obvious which type of Power of Attorney you need, there can be legal and medical factors you’re not aware of that warrant creating one type over another.
Also, if you want to create a Power of Attorney to be used much later in life that can flex as circumstances change, it’s important to consider scenarios that may not be clear to you at this time.
The best way to pick the right type of Power of Attorney is to work with an experienced lawyer to develop a comprehensive strategy for now and in the future.
Rest Easy Knowing It’s Done Right
Using a Power of Attorney, you can appoint any competent person over the age of 18 to be your attorney-in-fact. You may also appoint financial institutions. However, keep in mind that this is a large responsibility to hand over to an individual. It’s critical that you choose thoughtfully and wisely.
Laws vary from state to state, and what seems like a small legal loophole can make legal documents unenforceable. The last thing you want is to have a bank or medical institution refuse to honor your Power of Attorney right when you need it most. To make sure your Power of Attorney is legally binding, work with a lawyer with knowledge of the laws in your state. Doing it right provides peace of mind.