Powers of Attorney (POAs) are an essential component of estate planning. However, to make the most of these documents, it’s important to understand the different types of POA.
The agents named in POAs make decisions on your behalf. These can be financial or they can relate to your healthcare needs. The types of POAs that you need depend on your unique circumstances. Here are three of the main types of POA.
Durable POA
A durable POA has a broad range of authority. They can manage your finances and pay your bills should you be unable to. They can handle investments on your behalf. Their authority continues even if you become incapacitated.
Due to the long-term nature and broad scope of durable POAs, you must choose someone you trust for this role.
Limited POAs
Limited POAs are generally utilized for specific tasks. For example, you may instruct a limited POA to sell a property or asset on your behalf. Once that task is completed, they have no more power over your financial affairs.
Medical POAs
POAs are about more than finances. They are an essential part of meeting your healthcare needs. If you can’t express your medical wishes, then you need someone you can trust to do this. A medical POA instructs an agent to make medical decisions on your behalf that are in line with your wishes. This includes receiving or not receiving different types of treatments.
POAs are just one aspect of estate planning. A comprehensive estate plan can ensure that your wishes regarding assets, medical requirements and the care of your children are honored. Seek legal guidance to find out more about the process.
