You’ve probably heard about how important having a durable power of attorney in place can be—and it’s true. A power of attorney is a document that allows you to appoint someone to make important decisions on your behalf. Because you never know what might happen to you, naming a trusted individual to act in your best interest should you become incapable of making decisions is an essential step in protecting yourself and your family. But with so many different kinds of powers of attorney out there, it can be hard to sort them out.
Different Types of Power of Attorney
Powers of attorney are an essential, if often overlooked, part of estate planning. Here are a few of the most common types:
Durable Power of Attorney:
A durable power of attorney is not bound by any particular time limits and goes into effect when a person becomes incapacitated or otherwise unable to make their own decisions. The durable power of attorney will remain in effect until the person passes on. Durable powers of attorney can themselves be of various kinds, including medical power of attorney and financial power of attorney.
Medical Power of Attorney:
A medical power of attorney allows you to name a healthcare proxy who will make important decision on your behalf if you become incapacitated. You can decide specifically which decisions your healthcare proxy will be authorized to make.
Financial Power of Attorney:
Similarly to a medical power of attorney, a financial power of attorney allows you to appoint a trusted agent to act on your behalf, in this case on decisions related to your finances. Your agent will be entrusted with the power to manage all your finances and property and to make financial transactions in your name as indicated in the agreement.
Whatever type of power of attorney you’re interested in drawing up, knowing the basics is essential. A POA endows another person with significant decision-making power on your behalf, so it’s important not to take it lightly.
Contact Deliberato Law Center
If you have any questions about setting up a power of attorney, please feel free to contact the experienced estate planning attorneys at the Deliberato Law Center. Give us a call at (216) 341-3413 or fill out the form below to get started today.
Recent Comments