Estate Planning Lawyer

Five Types Of Power Of Attorney

Establishing a Power of Attorney is a key element of any thorough estate plan. Deciding what type of power of attorney is best for your needs can be a complicated process. Below we have listed five types of power of attorney to help you better understand the nuances of each. The best way to ensure that your power of attorney represents your best interests is to consult with an experienced estate planning lawyer

Durable Power Of Attorney

A Durable Power of Attorney remains in effect even if the principal (the person granting the power) becomes incapacitated. This type is crucial for estate planning, as it ensures that someone can manage your affairs if you’re unable to do so yourself. It’s often used in planning for Alzheimer’s disease or other degenerative conditions. The agent (the person given the power to make decisions on the principal’s behalf) can be granted powers including managing financial affairs, making medical decisions, or handling business transactions.

Springing Power Of Attorney

A Springing Power of Attorney becomes effective only under certain circumstances, typically when the principal becomes incapacitated. This arrangement offers an extra level of control, as it’s not active until a specific event occurs, ensuring that the principal’s affairs are handled only when necessary. As our friends at Silverman Law Office, PLLC know, it’s important to clearly define the triggering event to avoid confusion or legal issues.

General Power Of Attorney

A General Power of Attorney grants broad powers to the agent. This type of power of attorney allows the agent to handle a wide range of affairs, including financial matters, business transactions, and personal affairs. It’s effective immediately upon signing and remains so until it’s revoked, the principal becomes incapacitated, or the principal dies. It’s a powerful tool for someone who needs another person to handle their affairs for an extended period.

Financial Power Of Attorney

Specifically designed for financial matters, a Financial Power of Attorney allows the agent to manage the principal’s financial affairs. This can include paying bills, managing investments, and handling transactions. It’s particularly useful for individuals who may be traveling or unable to manage their finances themselves for a certain period of time.

Medical Power Of Attorney

A Medical Power of Attorney, also known as a Healthcare Proxy, authorizes the agent to make healthcare decisions on behalf of the principal if they are unable to do so. This can include decisions about medical treatments, healthcare services, end-of-life care, and more. It’s a crucial document that ensures your health care preferences are respected, even when you can’t communicate them yourself. 

Receiving Legal Assistance With Estate Planning

Each type of Power of Attorney serves a unique purpose in estate planning and personal affairs management. Consulting with an experienced lawyer is the best way to ensure that you are making the best decisions for both yourself and your family. Begin discussing your estate planning journey with a lawyer today and take an important step towards securing your future.