There are numerous reasons why a person may wish to assign an “attorney-in-fact” role to an agent to make financial decisions and/or conduct transactions on his or her behalf. Say you’re purchasing a second home in another state, but can’t make it to the closing. You can grant your real-estate agent the right to sign closing documents in your place. Note, however, that without proper limits on his power, you may also have given him the authority to go drain your bank account.
This is why there are several different types of powers of attorney. It’s a good idea to consider what you may need — and even make the assignment ahead of time — because you never know when you may become suddenly and unexpectedly incapacitated. Granting power of attorney to someone you trust who understands your wishes in advance of such an event allows you to ensure your finances can continue working for you even if you are not capable of controlling them.
While there are many prepackaged do-it-yourself forms available, it’s a good idea to have an experienced attorney draft a power of attorney document for your specific situation. At AGT we offer you a free consultation with an expert, experienced estate planning attorney, who can meet you in the comfort of our office, at a time that is convenient for you. The following are four types of power of attorney to consider:
Limited Power of Attorney grants another person the power to act on your behalf for a specific purpose and for a limited period of time, which is detailed in the document.
General Power of Attorney assigns an attorney-in-fact all powers and rights to act on your behalf, including the ability to sign documents, pay bills and conduct financial transactions.
Durable Power of Attorney is specifically for when a person becomes incapacitated, and can be either for all general purposes or limited in scope. It is designed to remain in force until you pass away or rescind it (while not incapacitated).
Springing Power of Attorney will take effect should you become incapacitated. The document should provide a specific definition of incapacitation, as well as the factors that will determine this status and trigger the installation of the power of attorney.
Elder Law Answers. March 4, 2015. “Powers of Attorney Come in Different Flavors.”http://www.elderlawanswers.com/powers-of-attorney-come-in-different-flavors-8217. Accessed June 10, 2015.