A power of attorney, often known as a POA, is a legal document that enables you to assign decision-making authority to another person. Your agent or proxy is referred to as this individual.

Understanding the various POA types will enable you to select the one that is most appropriate for you. Below, we’ve broken down some of the more common types for you.

Durable power of attorney

A durable POA allows your agent to continue acting on your behalf even if you become incapable, such as if you go into a coma. Because you’re preparing for a scenario in which you might not be able to make decisions on your own, it’s usual for your POA to be durable if you’re using it for estate planning. Unless you express otherwise, the court will normally assume that a POA is durable in most states. To avoid any misunderstandings, it’s best to expressly indicate whether you want your POA to be durable in the paperwork.

Spring Power of Attorney

A springing POA only grants your agent the authority to take action when a specific circumstance is present. The prerequisite for using a power of attorney for estate planning is often that you are no longer capable of acting on your own behalf. Your agent’s power “springs” into action as soon as the prerequisite is satisfied. You are the sole person with power over your affairs until that time, and your agent has no legal standing.

Although a springing POA guarantees that your agent can’t act on your behalf until you’re incapable, the majority of lawyers don’t advise utilising springing POAs for estate planning.

General Power of Attorney 

A general power of attorney gives your agent the freedom to represent you in any situation that is permitted by local law. This covers corporate, legal, financial, and health-related issues. Depending on your selections, general POAs may be durable or not.

Although a general POA gives your agent significant control over your affairs, there are still several things they are unable to perform. For instance, they are not permitted to make changes to your final will and testament or enter into a marriage on your behalf.

Financial Power of Attorney 

A financial POA is categorised as a special or limited power of attorney since it delegates authority to your agent to take action on your behalf with respect to specific topics of your choice. In this instance, it permits your agent to make choices about your finances and property. You could, for instance, give your agent the power to:

• Pay your family’s bills as well as yours.
• Make bank withdrawals and deposits.
• Manage and collect your pension benefits.
• Real estate can be rented or sold.
• Submit your taxes

Which powers you want your agent to have is up to you. You might, for instance, only want your agent to handle your property or pay your payments. Financial POAs can be be long-lasting or short-lasting, depending on your preferences.

Health care Power of Attorney 

An additional kind of special or limited power of attorney is a medical POA, sometimes known as a healthcare POA. It enables your agent to decide on your behalf when it comes to healthcare. This may involve selecting your medical care options, such as:

• Medical procedures
• Medication
• Surgery
• The medical professionals and facilities that provided to you for your care.
• Your healthcare representative, for instance, may decide whether you want a feeding tube if you’re too ill to communicate that to your doctors.