There are moments when navigating legal paperwork is like attempting to read a map in a foreign language. But it’s important to understand the power of attorney. A power of attorney allows you to delegate decision-making authority to someone you trust. However, did you know there is more than one type, each with a distinct role?
- General Power of Attorney. Let’s say you have a long trip coming up, and someone must take care of your business while you’re gone. A general power of attorney is useful in this situation. It gives your designated agent extensive authority. They can manage your property, sign paperwork, and manage your finances. But if you pass away or become mentally incapable, this power of attorney is nullified.
- Durable Power of Attorney. Now, picture a situation where a sickness or accident renders you incapable of making decisions. For these kinds of circumstances, there is a durable power of attorney. “Durable” in this context refers to the fact that it holds even in the event of mental incompetence.
- Special or Limited Power of Attorney. Let’s say you require someone to manage a real estate deal or sell an automobile for you. For this, a special or limited power of attorney is ideal. It restricts the agent’s abilities to a certain assignment or time limit.
- Healthcare Power of Attorney. If you cannot decide for yourself, your agent can act on your behalf to select care facilities, physicians, and treatments.
If you cannot manage your own affairs, a power of attorney provides you with the peace of mind that your financial, medical, or personal matters can be handled according to your intentions. Selecting the appropriate type of power of attorney and representative is a serious decision. If you need legal guidance to determine which POA best suits your needs, contact us.