If you’re new to estate-planning, you might have heard the term “power of attorney” but don’t know what it means. Most people believe that making a testament and last will is enough to ensure that assets go into the right hands. Frankly speaking, the last testament is just the tip. Modern estate-planning is more inclusive and detail-oriented, with the goal of providing all sorts benefits to you, your loved ones and yourself, during and after life. Click here!
The power of attorneys is a legal document which allows a person designate a third party to act on his or her behalf when needed. Consider all the time you’ve had to take important decisions for your family because they weren’t able to. If you’re a guardian or parent, you understand how much you depend on your kids. Children’s safety is ensured by their parents.
As a young adult, parents are no longer able to control the life of their child. If you are incapacitated, or go missing, who will fulfill your obligations? Who will take care of your health and financial matters?
San Francisco Estate Planning Attorney explains the five different types power of attorneys:
1. Durable power of Attorney
The durable power-of-attorney allows an appointed agent comanage the affairs in your estate along with you. This agent may continue to act on your account if you become incompetent. While you are still able to think clearly, you will retain the power over any financial or healthcare issues. Normaly, the power is transferred as soon as the document is signed, but it can be conditional. The person you select can only make decisions when you are incapacitated. They are revocable. The power of attorney may be changed or annulled at any time. The power of Attorney expires when you die.
2. Non-durable Powers of Attorney
A non-durable power attorney agent can only be appointed if you are still living. The agent’s powers are terminated when you become incapacitated. The person who has durable power can, for instance, make financial and health decisions on your behalf if you go into a coma. In contrast, a person with non-durable legal powers of attorney is unable to act in your place if you become unconscious.
3. General Power of attorney
The general power is also referred to as the financial power, since the chosen agent has control over the estate’s economic affairs. These include the following: paying bills, entering contracts, selling property, managing transaction, making investments and collecting revenue.
4. Medical Powers Attorney
If you are clinically determined to be mentally disabled or compromised, the medical power-of-attorney or advanced directive allows you to decide who will take care of your medical needs. The person who has this power will decide on the type of medical treatment and procedures you should undergo while incapacitated. They have the final decision on all medical matters such as organ donations, medical reports, artificial living support, and surgeries.
5. Limited Powers Of Attorney
This limited power allows you to designate an agent who can act on your behalf in certain situations or for specific objectives. You can create more than one of these and grant different powers/duties to each agent. This type can be ended at a particular time or once the purpose is completed.