The adage “life is full of uncertainties” sounds so cliché but true. There might even come a time when you or someone you love cannot make critical decisions anymore. This could happen due to illness, age, or unforeseen circumstances.
It might seem unthinkable but you need to prepare for all eventualities. One way to do this is to draw up a Power of Attorney. This crucial legal document gives someone you trust the power to act on your behalf.
The individual you grant a POA is your “agent” or “attorney-in-fact.” They’ll be able to make decisions and do tasks on your behalf. Legal documents will refer to you as “principal.” How much authority the agent has depends on the type of POA.
Many people are aware of what a “Power of Attorney” is but not of the different types. They also don’t know what POA is the most appropriate for their needs. So what is the most recommended type of Power of Attorney? This post provides an overview.
What are the 5 Types of Power of Attorney?
There are several types of POA. Each one addresses different needs.
- General Power of Attorney
A general POA gives your agent broad authority to act on your behalf. You’ll give them the power to manage financial and legal matters as allowed by law. For example, your agent can sell your property, handle your bank account, or file your taxes.
A general POA is a short-term contract. It’s best used when you need someone to manage your affairs in the interim. The contract becomes invalid when you’re incapacitated.
- Durable Power of Attorney
A durable POA is different from a general POA. This agreement sees your agent in control of certain financial and legal matters. They’ll have control even if you’re incapacitated. This POA is often recommended for long-term planning.
A durable POA can give you peace of mind. You’re assured that someone will handle your affairs if you’re incapacitated. The detailed scope of your agent’s tasks is in your agreement. For example, you can agree that your attorney-in-fact can pay your medical bills. But you won’t let them make medical decisions for you.
- Limited (Special) Power of Attorney
This type of POA grants your agent specific and defined powers. For instance, you authorized them to sell a particular piece of property.
A limited special POA is ideal for situations where you have to assign specific tasks. The POA ends once the document expires or your agent completes the task.
- Medical (Healthcare) Power of Attorney
A medical power of attorney is one of the most popular POAs. Also known as a healthcare POA, it empowers your agent to make healthcare decisions if you can’t do it. For example, your agent can decide on your medical treatment or if you can have surgery. An MPOA also gives them the power to decide on your end-of-life care.
An MPOA is best for those who want someone trustworthy to oversee medical decisions for them. An MPOA is often used in conjunction with a living will. It outlines specific healthcare preferences.
- Springing Power of Attorney
Traditional POAs take effect once they’re executed. A springing POA becomes active only after it meets certain conditions. For example, you can’t act for yourself. It’s a good way of protecting yourself as the POA activates as needed. It’s challenging to determine if it meets the conditions though. Let’s say you have dementia. Are you incapacitated? These grey areas often lead to legal or medical disputes.
What is the Most Recommended Type of Power of Attorney?
The best type of POA depends on your situation. For example, a general POA is great if you want someone else to handle your affairs. An MPOA is ideal if you want your end-of-life care decision honored.
Many legal experts agree that a durable POA is the most recommended. It’s especially ideal for long-term planning. One reason is the continuity of authority. Your agent remains in control even if you’re incapacitated. This means bills remain paid and investments managed while you’re sidelined.
Helping Secure Your Future
Don’t leave financial, legal, and healthcare matters to chance. Warner and Warner will help protect you and your future. We’re Florida’s top personal injury lawyers. Decades of experience have given us a keen understanding of the litigation process. We also have the resources to ensure your case is always prioritized. We have a team of investigators, doctors, and researchers to support us. Our company believes also believes in transparent communication. You’ll receive feedback every step of the way. Take control of your future today. Contact us here or at 321-341-6783.