The term Power of Attorney (POA) refers to a legal power of attorney authorizing a specific person to act on behalf of another person. Thus, a POA confers upon an agent, or attorney in fact, the authority to act on behalf of the principal. However, not all powers of attorney are the same. A POA is an important legal document and below we will explain the different types.
Medical Power Of Attorney vs Financial Power Of Attorney
- A power of attorney focuses only on health-related decisions and is written to the client’s exact specifications. Accordingly, a medical power of attorney may contain provisions for a wide range of medical procedures, including administration of personal care, employment of personal nursing assistants, determination of medical care, and determination of overall medical care.
- A financial power of attorney allows someone you name to oversee your finances. Usually, it is used for this person to step in and pay your bills or handle other financial or real estate matters. This person can be a financial professional who acts on your behalf, or you can use it to designate a trusted friend or family member to handle matters that you are physically or mentally unable to handle on your own. In some cases, it can also be used for isolated, one-off situations where you are not suitable to be present, such as real estate in another city close.
What Is A Special Power Of Attorney?
A special power of attorney is a legal document that authorizes a person (often called an agent or attorney-in-fact) to act on behalf of another person (called a principal) under specific, well-defined circumstances. Also known as a limited power of attorney (LPOA), a special power of attorney allows a person to authorize another person to make certain legal or financial decisions on their behalf. Since this type of power of attorney is limited to what is stated in the signed document, it is especially important that the principal be very aware of the powers the attorney intends to have. In addition, the settlor can create multiple special powers of attorney and name a different person in each power of attorney.
Understanding A General Power Of Attorney
Compared to a special power of attorney, a general one is more broad. A general power of attorney gives the attorney the legal authority to make all financial and legal decisions on behalf of the principal. Those who stay abroad for a year can grant the agent broad powers to execute transactions such as personal and business financial transactions, paying bills, purchasing life insurance, charitable donations, estate management, and filing tax returns.
What Is A Durable Power Of Attorney?
A power of attorney will lapse if the principal dies or becomes incapacitated. However, special power of attorney can be made permanent. A durable power of attorney is a power of attorney that authorizes an agent to continue acting on behalf of a principal even if the principal becomes incapacitated, such as due to a head injury or Alzheimer’s disease. With a durable power of attorney, the attorney’s power to act and make decisions on behalf of the principal survives the principal’s death. A court will impose guardianship on a person who does not already have a permanent power of attorney and cannot enforce a special power of attorney. With a person’s death, the special power of attorney expires and the Will takes precedence.
Need Help With A Power of Attorney?
A power of attorney carries significant powers under the law. Because these documents are so critical to your future, it’s important to understand the options available to you and how they affect your financial, business, and personal affairs. If you or a loved one is considering making such a decision, consult with Gallinger Law. Our attorneys help clients near Los Angeles County, the Inland Empire, and Orange County with trusts and wills, business law, non-profit, and/ or immigration. Call 888-255-9147 to speak with one of our attorneys.