Powers Of Attorney: Choose From These

A complete estate plan should contain at least one power of attorney. There are several from which to choose. For a short explanation of each of them, read below and speak to your estate planning lawyer to find out more.

Powers of Attorney

A power of attorney allows you to appoint someone to make certain decisions for you when you cannot do so yourself. It covers occasions when you may be out of the country or incapacitated by illness. You can have as many as you wish to cover your needs.

General Power of Attorney

As the name suggests, this type of power of attorney gives the appointee the power to make general financial and legal decisions. They have the power to pay bills and handle business decisions. However, this type of power of attorney expires when the principal (the creator) passes away or becomes incapacitated.

Durable Power of Attorney

This power of attorney goes into effect once signed by the principal. However, the person assigned to the power of attorney role has no power unless the principal becomes incapacitated. This type of power of attorney expires upon the death of the principal. On the flip side, a nondurable power of attorney expires as soon as the principal becomes incapacitated.

Medical Power of Attorney

Once the principal is declared mentally unable to make decisions on their own by a medical doctor, this power of attorney comes into effect. The person designated with the power of attorney can make all healthcare-related decisions, such as those pertaining to life-prolonging measures, organ donation, tube feeding, resuscitation, and more. They can decide where the principal can be hospitalized and has access to their medical records. If the principal has a living will or other healthcare directives, however, those documents take precedence over the decisions of the power of attorney.

Limited Power of Attorney

This power of attorney gets specific with the scope of things. It allows the designated person only certain powers, only in certain situations, and only within limited time frames. This type of power of attorney is flexible and the limits can be set by the creator.

Springing Power of Attorney

Like the limited power of attorney, this document only comes into effect when specific actions occur. Often used by military personnel who leave the country, it's only effective when they do so. It might also become effective only when the principal is incapacitated for a certain period or is diagnosed with certain medical conditions.

Speak to an estate planning attorney for help choosing the right power of attorney for you.