Several Types Of Power Of Attorney And What You Should Know About Them
Caring for a loved one often means managing their finances. The ability to manage financial matters is an important skill to grow while you grow up. It is unpleasant to think about the time when you will be unable to manage your finances. But you need to be practical and think about the time when you actually might need someone else to step in.
A power of attorney grants you to appoint someone who will be able to step in and manage your financial matters. The person who is provided with a power of attorney is known as the agent. The agent is supposed to prioritize the needs of the one who chose them. As an agent, you will have to respect the wishes of the individual who gave you power of attorney.
The agent has a say in multiple decisions. You can make financial decisions and monetary gifts. You can also make healthcare decisions, including the ability to consent to give, stop or withhold medical treatment. It is also possible to provide a separate power of attorney for healthcare to someone else. You can also recommend a guardian if you have a power of attorney.
A power of attorney can be of different types with different benefits for each. Know about the different kinds of power of attorney and understand which one is the most suitable for you.
General Power of Attorney
A general power of attorney enables the agent to work as the principal. You can become a general power of attorney agent and perform a number of functions on behalf of the person who was appointed. But you will be in power as long as the person who appointed you can function.
If they become incapacitated, you will have no responsibilities left. Otherwise, you can perform a number of functions, including managing tax orders. You can also make plans for finance and real estate if you are given a general power of attorney. To know more about your rights as a general power of attorney agent, you can seek help from a legal aid attorney.
Durable Power Of Attorney
A durable power of attorney gives the authority to someone else to manage your affairs. They will be able to make decisions on your behalf even when you become incapacitated. It is especially beneficial if you suddenly become incapacitated from an injury or illness.
A durable power of attorney will ensure that someone else is able to make medical decisions on your behalf. Even if you have chances, they will make decisions for you when you become incapacitated. Some durable power of attorneys become effective only when you lose the ability to make decisions on your own.
Giving someone durable power of attorney will mean that they will be able to sign legal documents for you. It is possible for the agent to make financial and business decisions on behalf of the one who has given you authority. Seek help from a financial planning service to understand why durable power of attorney might be important for you.
Limited Or Special Power Of Attorney
The agent will have the ability to manage a limited number of areas. You have to specify which areas you want the agent to handle. An agent might be appointed to deal with business issues. You can also ask a special or limited agent to sell a real estate property. An elder law Medicaid attorney can guide you in drafting this type of power of attorney.
The duties of the agent will be determined by the terms mentioned in the contract between the two parties. The agent needs to fulfil some other duties apart from the ones mentioned in the contract. Depending on the extent of the agreement, the agent has to maintain the provisions within the contract.
Springing Durable Power Of Attorney
A durable springing power of attorney is often known as a conditional power of attorney. The agent will have to ensure that certain conditions in the document are met for a power of attorney to come into effect. The condition typically involves that the person should become incapacitated for the document to become effective.
But it can be used in a wide range of instances. If someone in the military creates a springing power of attorney, the appointed relative will get the power to manage specific situations. But the specific circumstance such as the military person becoming disabled or being deployed overseas.
Final Thoughts
Discussions about power of attorney should be done during happy times. Emotions should not affect who you appoint as the agent. You have to ensure that your loved one will fulfill your wishes. You can consult legal law services to get advice about drafting power of attorney.
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