A power of attorney is a legal document that grants another person the authority to act on a person’s behalf in financial matters, medical decisions, and other matters. It is a powerful document that can be used in a variety of ways to give someone else the authority to handle your affairs when you are not able to do so. If you haven’t yet decided who will have your power of attorney, here is what you need to know.
What is Power of Attorney?
Power of Attorney (POA) is a legal document that provides someone else with the authority to act on your behalf. It can be used for a variety of different situations, from managing finances to making medical decisions. With this document, you give another person the power to make certain decisions and/or take certain actions in your name.
The person you assign as your attorney-in-fact should be someone you trust completely, as they will have access to financial accounts, real estate transactions, and other important documents related to your life. Power of Attorney documents are often used when someone is incapacitated or unable to make their own decisions due to illness or injury, but they can also be utilized in estate planning and business transactions.
Types of Powers of Attorney
There are several different types of POAs, each with its own set of rules and regulations.
General Power of Attorney
A general power of attorney (POA) is a legal document that gives another person the authority to make decisions and take actions on behalf of the principal (the person who creates the POA). The powers granted in a POA can be very broad or quite specific, depending on the principal’s wishes. Generally speaking, a principal can grant any type of authority in a POA, such as handling financial affairs, making healthcare decisions, conducting business transactions, or filing legal documents. In some cases, the principal may limit the other person’s power to certain areas or activities only.
Limited Power of Attorney
A limited Power of Attorney (POA) is a document that allows someone to make specific decisions on behalf of another person. It is often used in situations where the principal, or grantor, cannot act on their own behalf and needs someone else to do so. The POA outlines the exact areas in which the agent can make decisions, as well as limits on their authority. They can only act within the scope of the document and cannot take any action not specified in it. The POA also defines when it will expire and how it can be terminated early if needed.
Enduring Power of Attorney
An enduring POA ensures that the appointed attorney-in-fact has the authority to continue acting on the principal’s behalf even in the event that the principal becomes unable or unwilling to make decisions on their own. The powers granted by this type of POA are usually broad and can include making financial and medical decisions, managing property, filing taxes, and making other important decisions related to the principal’s life.
Springing Power of Attorney
A springing POA only becomes valid when certain conditions are met. These conditions could be anything from the individual becoming incapacitated or when they reach a certain age. In some cases, it may also become active if a particular event occurs, such as an illness or death. It is important to ensure that all conditions are clearly and accurately set out in the POA in order for it to be valid and legally binding.
A springing POA can be revoked at any time prior to its activation, so it is important to keep this document updated with any changes in circumstances. Once all the required conditions have been met, the POA will come into effect and the designated representative will have full authority to make decisions on behalf of the individual who granted them power.
Durable Power of Attorney
A durable POA remains in effect until it is revoked or expires due to specified circumstances. It remains in effect until it is revoked or expires due to specified circumstances. A durable POA should be drafted by a lawyer and signed by both parties in order for it to be legally valid.
Contact a Chicago Estate Planning Attorney Today
The power of attorney can be a great tool to protect yourself and your property in the event that you become incapacitated or otherwise unable to make decisions for yourself. It allows you to designate a trusted individual to manage your affairs and ensure that your wishes are respected. Contact James C. Provenza & Associates, P.C. at (847) 729-3939 or by filling out our online form to decide who your power of attorney will be.
