Power of attorney is another serious matter that a lawyer can help you with. This is a document that gives your designated attorney the authority to act on your behalf. It can be especially useful if you have an accident or fall ill and are not able to handle your affairs. The attorney can sign contracts, pay bills, and make financial decisions on your behalf.
Power of attorney or POA can help both you and your loved one when it’s time for your parent to become a senior citizen. Instead of leaving decision-making about your parents’ medical care in the hands of other family members, you can appoint a POA so that your loved one’s wishes can be followed at all times.
What is Power of Attorney?
The term “power of attorney” is often misused, but at its heart, it is simply a legal document that appoints another individual to act on your behalf. When your spouse or child becomes incapacitated, you can use this legal document to name a trusted individual to make decisions for them, including medical and financial. There are several different types of powers of attorney, each having different restrictions and purposes. Each state has its own set of laws regarding powers of attorney, so it’s important to familiarize yourself with the laws where you live.
When drafting a power of attorney, seeking the assistance of an experienced lawyer is highly recommended. A lawyer can provide invaluable guidance in navigating the intricate legal landscape and help ensure that the document is correctly executed and tailored to your specific needs.
The power of attorney is a written document that gives one person (the principal) temporary power to act for another person (the attorney-in-fact). It can be for any one or combination of the three types of powers:
A general power of attorney allows the principal to give the attorney-in-fact permission to act in the principal’s place with respect to some or all of their financial, business, and property transactions.
Different Types Of Power Of Attorney That Can Help Your Family
Durable Power of Attorney
A Durable Power of Attorney is a binding document that enables an individual to assign an agent, or representative, to manage their finances and property if that person becomes unable to manage such matters. These documents are also known as “Advance Directives” because they set in place a plan to take care of your financial needs in the event you are unable to do so yourself in the future. The process for creating a Durable Power of Attorney is relatively straightforward, but it is important to understand that the document must be updated as you change your circumstances.
General Power of Attorney
A general power of attorney is a document that allows the agent to handle any kind of legal or financial matters, including things like selling your house, opening bank accounts, transferring assets, settling debts, and filing your taxes. It’s vital, however, to make sure you name someone you trust as your power of attorney since the person you name can legally act on your behalf.
Medical Power of Attorney
A Medical Power of Attorney is a document that allows you to appoint someone to make medical decisions for you when you are unable to. For example, the Medical Power of Attorney will allow your designated agent(s) to make medical decisions on your behalf if you are in a car accident. Similarly, if you’re in the early stages of dementia or some other neurological condition and therefore have to be put into assisted living from Chelsea Senior Living or a similar institution, then the Medical Power of Attorney will allow your designated agent to ensure that you are looked after well and your financial and other burdens are taken care of.
Springing Power of Attorney
Springing Power of Attorney, or SPO, is one form of legal document that is useful when an individual is sick or injured and temporarily unable to make important decisions for themselves. It lets another person make those decisions temporarily and then allows them to be reversed when the individual’s health is restored. Another benefit of SPO is that it can help avoid costly guardianship and conservatorship proceedings, which can drain family assets.
Non-Durable Power of Attorney
A non-durable power of attorney allows an agent to make any financial decision on another’s behalf. This document is referred to as a “non-durable” power of attorney because an appointed agent can only act on one’s behalf if they become incapacitated in any way. This document only becomes effective after you become incapacitated, and your agent cannot act on your behalf while you are not incapacitated.
Limited Power of Attorney
A limited power of attorney (LPA) is a type of legal document that allows an individual to assign someone to make decisions on their behalf in the event of incapacitation. While an LPA can be used for several different reasons, including decisions about financial matters, day-to-day care, and medical treatment, the document’s primary purpose is to protect an individual who is physically or mentally unable to make decisions.
A power of attorney is one form of legal document that specifically appoints one person to act on behalf of another. When an individual is no longer able to take care of their own affairs, a power of attorney allows a family member to step in and perform that function on their behalf. While this document does not replace the need for estate planning, it can help your family member make responsible decisions.