Are there different types of Powers of Attorney?
Yes, there are several different types of Powers of Attorney. The different types of Powers of Attorney (POAs) can be explained by categorizing them as (1) what powers the agent is granted (e.g. General, Medical, or Financial) and (2) when the Power of Attorney comes into effect (e.g. Non-durable, Durable, or Springing).
- The three most common types of Powers of Attorney which illustrate what powers the agent is granted are (a) General, (b) Medical, and (c) Financial.
- A General Power of Attorney can be prepared so that it gives the agent the general authority to do nearly anything you, the principal, could do if you were physically present. This is an extremely broad power, and you should think very carefully about the person you wish to appoint as your agent.
- A Medical or Financial Power of Attorney, unlike a General Power of Attorney, can be prepared to limit your agent’s power to making certain medical or financial decisions on your behalf.
- The three most common types of Powers of Attorney with regard to when the Power of Attorney comes into effect are (a) Non-Durable, (b)Durable, and (c) Springing.
- If your Power of Attorney does not indicate that it is durable, it may become ineffective in the event you are incapacitated (non-durable). Because most people want the Power of Attorney to be effective in the event they are incapacitated and therefore unable to make their own decisions, a non-durable POA is generally not preferable. Having a Power of Attorney drafted by one of our Toms River attorneys can help you avoid this result and ensure that your Power of Attorney is effective when you need it most.
- If you execute a Durable Power of Attorney, the document can go into effect the day it is signed and will continue to be effective in the event of any future incapacity. This is the more popular type of POA, because most people want the document to be in effect when they are unable to manage their own affairs.
- A Springing Power of Attorney, on the other hand, will only become effective upon incapacitation. Springing POAs often require doctor determinations that the principal has become incapacitated, creating delays and extra costs involved with making the Power of Attorney effective.
NOTE: This page is for general information only and is not be solely relied upon. If you have questions about your estate plan, please contact a Toms River attorney at Costanzo & Russom Law Group today!