Understanding Power of Attorney

Life is surprisingly unpredictable. Unexpected events can leave you unable to care for yourself or handle your affairs. It is vital to take preventative precautions to preserve your peace of mind and the safety of your family and assets. Understanding power of attorney is a useful instrument in managing your estate and other assets. It can be quite valuable in the event of an accident or an illness that prevents you from handling your estate matters.

Understanding Power of Attorney?

A power of attorney, often known as a POA, is a legal instrument that allows you to designate someone or an organization to manage your medical, property, or financial affairs if you become unable to do so yourself.

What Are the Types of Power of Attorney?

Varied POAs grant different amounts of control to your attorney-in-fact or agent, the person you choose to make decisions for you.

• General power of attorney – The agent has the authority to act on your behalf in any scenario permitted by local law.
• Durable/Non-durable power of attorney – A durable power of attorney permits your agent to continue acting in your interest if you become incapacitated. A non-durable POA, on the other hand, becomes ineffective when you’re declared incapacitated.
• Special or limited power of attorney – This POA document restricts the agent’s actions to certain circumstances. For example, selling a house.
• Springing power of attorney – This POA becomes effective when a specific event occurs, such as the principal becoming incapacitated or being declared mentally incompetent.

Who Should be Your Agent?

When choosing an agent, the most critical aspect to consider is trust. You’ll want to choose someone you trust to act in your best interests. You can choose a relative, a friend, an attorney, or an organization as your agent.

Do You Need Help Drafting Your Power of Attorney?

Assigning a power of attorney can be a complex legal process. If you would like assistance in drafting your power of attorney, The Slaughter Law Firm is here to help. Contact us today for your legal troubles and get a free consultation.