There are multiple power of attorney options that leverage authority over your assets in varying ways. Here are a variety of power of attorney types and some of the ways that each one can be a useful element in your overall estate plan.
One benefit common to all types of powers of attorney is the ability for you to choose whom you wish to make decisions and act as an agent in legal affairs such as transactions. This is why it is essential to plan, as a competent individual must initiate a power of attorney.
Limited Power Of Attorney
True to its name, this legal designation extends authority to another person to complete a specific task for you such as selling property in another locality. This comes in handy if you have other obligations and need a trusted person to act as your agent in legal or financial affairs.
General Power Of Attorney
This type of legal designation can grant the person you name as an agent broad authority to act on your behalf. Your document must specifically list all of the actions you want the agent to perform on your behalf to have a valid general power of attorney
Durable Power Of Attorney
The advantage of a durable power of attorney is that it does not expire if you become incapacitated. This is the most commonly used power of attorney and can name agents to make medical and financial decisions for you if you are unable to do so. A durable power of attorney enables your agent to act on your behalf without a court becoming involved.
Whatever type of power of attorney you and your lawyer decide to execute, you must explicitly state the actions you authorize your agent to do when you write the directive. Creating a complete estate plan using different powers of attorney can facilitate getting your wishes accomplished.
