What are the 4 types of power of attorney?
What is a Power of Attorney?
Power of attorney (POA) is a crucial legal document allowing an agent to make financial and legal decisions on behalf of a principal who is unable to manage their own affairs due to incapacity or absence. The authority granted is flexible, with agents tasked to act in the principal’s best interests under a fiduciary duty.
Types of Power of Attorney:
Limited Power of Attorney: Grants authority for specific tasks or events, such as selling property or managing accounts, concluding once tasks are completed.
General Power of Attorney: Allows agents to perform a wide range of actions, similar to what the principal could do, but poses risks of mismanagement.
Durable Power of Attorney: Remains valid even if the principal becomes incapacitated, ensuring continuous management of affairs without court intervention.
Springing Power of Attorney: Activates under specific conditions, like incapacitation, but may complicate timely decision-making due to potential disputes over the principal's competence.
Understanding these types helps in ensuring legal and financial security. Our office can effectively address any legal questions about powers of attorney. If you have any questions, please fill out the following form below and a Legacy Planning lawyer from our office will get back to you.
