You may already understand the term “power of attorney,” but do you know that there are many types of power which can be legally granted to others? These varying types help deal with certain needs, such as a temporary forfeiture of power over certain decisions or an appointment which takes place as soon as a person becomes incapacitated.
When drafting a will with your estate lawyer, you will have to decide who you will want making certain medical, legal, and financial decisions for you in the event that you become unable to do so. This is one of many times it becomes important to identify an agent to hold your power of attorney. Other times you may be out of the country for an extended period and you need someone to manage your business and assets. There are ways to handle your power of attorney that won’t completely sign over your agency permanently.
Today, an estate lawyer from the Davidson Law Group provides an overview of the types of power of attorney.
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Durable Power of Attorney
The durable power of attorney is the one perhaps most people are familiar with. In this case, the agent receives the power of attorney as soon as the principal (the person signing over their power of attorney) becomes incapable of making decisions. Because this transfer is “durable,” it has no set time frame, and its effect ceases upon the principal’s passing.
Non-Durable Power of Attorney
The non-durable power of attorney is not as binding as the durable power of attorney. Here agency is transferred for a specific amount of time to be set by the principal. Typically, this allows the agent to carry out a single transaction in the name of the principal. Once that transaction is finished, power returns to the principal. In the event that the principal becomes incapacitated, the transfer is voided.
Special Power of Attorney
This is also referred to as the “limited” power of attorney. Here the principal designates a specific transaction or set of decisions that the agent who receives power is intended to carry out. Once this is completed, the transfer is voided.
Medical Power of Attorney
A medical power of attorney gives an agent the power to make healthcare decisions for the principal. Typically a principal will outline certain wishes for how they should be treated should extenuating medical circumstances arise which make them incapable of making decisions.
Springing Power of Attorney
The springing power of attorney takes effect when certain conditions are met, one of them often being the incapacitation of the principal. But this transfer can also be handy in the event that a business operator is unable to attend important functions which would require significant business decisions. This type of transfer can be either durable or non-durable, and it may apply only to certain matters as dictated by the principal.
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Discuss Your Power of Attorney with a Davidson Law Group Estate Lawyer
Transferring your power of attorney becomes a smart and important option as you develop and grow your estate. It is especially crucial when working with your estate lawyer to develop a will & testament. While you may not need to rely on all of these types of attorney, having an estate lawyer by your side who can help you navigate the differences is a significant help. To learn more about power of attorney, set up a free consultation with an estate lawyer from Davidson Law Group today.