Not all Powers of Attorney are Created Equal
Power of Attorney
A Power of Attorney is a document written which grants permit to an agent, who acts on behalf of principal. The power of attorney applies when the principal is unfit to make decisions concerning a case. A power of attorney is a very crucial document. It can be implemented when one is mentally, physically, and cognitively incapacitated and there is a need for someone else to make your final decisions. The power of attorney is durable. “Durable” shows that the agent chosen can act even in cases of disability or incapacitation. Powers of an attorney are different as illustrated below.
A General Power of Attorney
The general power of an attorney allows an agent to decide on all matters concerning the businesses and personal life of the principal. This power provides the largest authorization to the agent. In most cases, this power is used to allow the agent make decisions regarding medical, financial, business and legal concerns for the principals.
Specific or Limited Power of Attorney
In contrast, a Specific or Limited Power of Attorney is a power that is barely drafted to offer an agent the power to carry out the specific transactions with certain powers. For instance, a principal is able to give a specific Power of Attorney that is drafted authorizing his agent to sell property at 123 Main Street, Washington, DC, while including the power to mark all documents that are related to the sale.
Durable Power of Attorney
In addition, a Durable Power of Attorney is one that remains in effect even if the principal becomes mentally incapacitated. For any power to be accepted as a Durable Power of Attorney, certain language should be used in the body of the document. It should not appear only as the caption.
Unless specified otherwise, the powers of your agent are effective, from when the document was executed however; you are still in a position to manage your affairs. Sometimes, it is preferred that the powers of your agent should be predicted on some events called “springing” power of attorney. This type of power is common in Healthcare Powers of Attorney.
Overall, at some point you will need to know more about the powers of an attorney. If not for you, you will recommend a friend or family member. For more clarification about the powers of an attorney, and what you need to consider, contact one of our experienced estate planning attorneys today.