Power of Attorney (POA)

This is an important legal issue to get resolved and we can help make it happen. A power of attorney is a written authorization given to a person to represent or act on another’s behalf in private affairs, business, or some other legal matter. The person authorizing the other to act on his or her behalf is known as the principal, grantor, or donor.

The Four Types of Power of Attorney

          1. The Limited Power of Attorney

This POA is implied in the name. It gives a designated person the authority to act on another person’s behalf for a limited purpose. The legal documents authorizing the authority usually specify a date and time period after which the POA ends.

         2. The General Power of Attorney

This POA is much more comprehensive. It essentially assigns all of your powers and rights to someone else. A general POA can also be used when people don’t have the time, skills, or desire to handle financial matters. Unless it is revoked, the person selected as the General Power of Attorney holds that authority until the assignor passes away.

         3. The Durable Power of Attorney

This is considered the most powerful POA. The main difference between the general and durable POA is that the durable version lasts even if the assignor becomes incapacitated. It’s usually given to someone when the assignor realizes he or she may not be able to make decisions in the future.

        4. The Springing Power of Attorney

This type of POA serves roughly the same purpose as a durable POA, but it only comes into effect once a specific event happens, such as when the assignor becomes incapacitated. With these types of POAs, it’s very important to clearly define what “incapacitated” means.