A power of attorney is a legal document that allows the creator to appoint a person or organization to make important decisions on their behalf in private affairs, business, or legal matters. A power of attorney agreement can be crucial to managing your affairs if you become incapacitated and are unable to make decisions.
There are different types of power of attorney, and each type serves a different purpose. Before you join hands with a business law firm in Santa Rosa to draft your power of attorney, it is important to choose the right type to meet your needs.
Here are some of the most commonly used types.
Durable Power of Attorney
A durable power of attorney comes immediately into effect after the creator signs it. If the person becomes mentally or physically incapacitated, the agent will retain the authority to decide on their behalf. A durable power of attorney ends automatically when the creator dies.
A non-durable power of attorney, on the other hand, becomes invalid even if the creator gets incapacitated. If, for instance, the creator of a non-durable POA goes into a coma, their agent will lose the authority to make decisions on their behalf.
Springing Power of Attorney
A springing power of attorney comes into effect only when a certain event specified in the POA occurs, or the creator is diagnosed with a certain medical condition (specified in the POA). Many military personnel, for instance, draft a springing power of attorney that comes into effect when they are deployed overseas.
Medical Power of Attorney
A medical power of attorney or advance directive allows the creator to authorize their agent to make healthcare decisions on their behalf if they become incapacitated.
The appointed agent has the authority to make important decisions regarding the creator’s surgical procedures, medical treatment, organ donation, artificial hydration and nutrition, the release of medical records, and choice of healthcare facilities.
Your healthcare agent will also ensure that you get the medical care specified in your living will. Though a medical POA comes into effect immediately after the creator signs it, it can be used only after the person is declared mentally incompetent by the physician treating them.
General Power of Attorney
A general power of attorney gives the appointed agent the authority to make important financial, business, and legal decisions, such as paying bills, entering into business contracts, and managing financial transactions on the creator’s behalf.
Limited Power of Attorney
A limited or special power of attorney gives the designated person the authority to act on the creator’s behalf for a specific purpose. A limited POA, for instance, can be used to give a person authority to encash checks. The agent will, however, not have the authority to maintain the creator’s finances.
Do you need help deciding which type of POA is right for you? Look no further than Johnston Thomas Law. We are a top-rated business law firm in Santa Rosa. To talk to one of our legal experts, call 707-545-6542.