Many people use the term power of attorney in a very general fashion, but there are specific types of powers of attorneys, and it is important to know the difference. Here are a few of the most popular types of powers of attorneys:
General Power of Attorney
A general power of attorney grants another person the power to act on your behalf in all general matters. With this type of power of attorney, the power granted is very wide, including the management of property, finances, transactions, and tax returns. A general power of attorney is only effective while the individual is alive.
Common powers granted under a general power of attorney include:
Conducting banking transactionsFiling tax returnsBuying or selling real estate
Purchasing life insuranceEntering contracts
Durable Power of Attorney
A durable power of attorney is a specific power of attorney. The durable provision in this type of power of attorney allows the document to remain in effect and enforceable if you become incapacitated. A durable POA can handle your affairs if you lose mental competency or capacity to do so yourself. It is critical that you only appoint a person you deeply trust to become a durable power of attorney.
Common powers granted under a durable power of attorney include:
Making health care decisionsConducting financial transactionsSigning legal documents
Special Power of Attorney
A special or limited power of attorney is granted authority to act in only specified matters or for a particular purpose. Common examples of this include, health care power of attorney, financial power of attorney, and power of attorney for care and custody of children.
Common powers granted under a special power of attorney include:
Selling and managing real estate
Managing business interestsMaking financial decisionsConducting financial transactionsSigning legal documents
Creating A Power of Attorney
If you need a power of attorney created as a part of your estate planning, our team can help. Our law firm offers complete estate planning services and often creates durable powers of attorney for our clients as a part of that process. Feel free to call or email us to learn more about how we can assist you and your family.