A power of attorney (POA) form is a legal instrument in which you provide another person (the attorney-in-fact) the authority to act on your behalf. The most significant advantage of establishing a POA is that it lets you select who will represent you if you cannot conduct your affairs independently rather than having a representative chosen for you.
Elderly persons often employ POAs as part of their overall estate planning to appoint a designated representative to handle their personal, medical, or financial choices as they age. However, even if you have years until retirement, a POA can assist you in preserving your health, wealth, and other affairs in many instances. Talk to a San Antonio trusts planning attorney to learn more.
What does a Power of Attorney do?
The person you appoint as your Power of Attorney is referred to as a fiduciary, who is in charge of managing the affairs of another. Depending on the sort of power of attorney, your agent may have a broad range of jurisdiction.
At its most basic, your POA will act on your behalf if you cannot do so yourself. This might include everything from medical decisions to financial decisions and more.
Types of Power of Attorney
Because there are several types of POAs, you must understand their distinctions to select the best one for your unique circumstances.
General power of attorney
A General Power of Attorney is a comprehensive document that grants an agent extensive authority to act on your behalf. General POAs are normally capable of the following:
- Employ professional help
- Conduct business transactions
- Buy life insurance
- Operate business interests
- Make gifts
- Handle financial or real estate transactions
- Settle claims
If you become unexpectedly physically or mentally handicapped, this POA can be quite useful. For instance, if you will be out of the country for a lengthy period. General Powers of Attorney are frequently included in a wider Estate Plan to guarantee that someone is designated to handle your financial affairs if you cannot.
Financial power of attorney
A Financial Power of Attorney delegates authority to an agent to make financial choices and act on your behalf if you cannot do so. This form of POA might be wide or narrow. It is a different term for General POA and generally grants all of the actions stated above.
Special power of attorney
A Special Power of Attorney lets you define the powers you want an agent to have. Special Powers of Attorney are typically utilized when you cannot handle your matters due to health difficulties or other obligations.
For more information about the Power of Attorney and its types, speak with an expert today.