What would happen if you suffered from a medical condition or injury and you could no longer care for yourself? This happens to many people every year, especially after individuals have developed medical conditions such as dementia, cancer or paralysis. Would anyone know how to care for you the way you want? You can help ensure someone does by naming a power of attorney (POA).
A power of attorney gives someone the legal right to act on your behalf in many situations. This would benefit you if you became incapacitated and could no longer care for your health. Several types of powers of attorney are possible, and all act in different ways. Here is what you should know:
Health care POA
A health care power POA can have control of any of your medical decisions. For example, they may help decide whether you should be placed on or taken off of life support, undergo surgery or be resuscitated.
Financial POA
A financial POA could manage any of your financial affairs. For example, they may pay for home bills, collect checks, file taxes or manage investment accounts.
General POA
A health care and financial POA can be separate people. However, a general POA can have control of both health care and financial matters.
Limited POA
A limited POA can be named to act in only specific situations for a specific time. For example, a limited POA may be used to make certain real estate investment decisions on your behalf.
Durable POA
A durable POA allows an agent to act on behalf of the principal even after they become incapacitated. A durable POA can manage a broad amount of duties.
Springing POA
A springing POA has a limited amount of duties that only take effect if a certain event happens — such as your sudden incapacitation.
Legal guidance can explain the benefits of a power of attorney and help you pick the right one for your estate plan and needs.