Power of attorney is a term most people have heard. However, there are multiple types, and it is important to understand the difference when you are planning your estate. A power of attorney can give an agent or agents you name the ability to act on your behalf financially, medically, and in other matters.
Both durable power of attorney and non-durable power of attorney contracts exist. A non-durable contract becomes inactive if you become incapacitated, and so generally isn’t useful if you are looking for someone to make decisions if you have an illness or accident that leaves you unable to make them yourself. In this case, a durable power of attorney is the usual choice.
A general durable power of attorney has a wide scope. It is useful if you want to name one person to decide important matters for you if you become unable. Examples of duties of a general durable power of attorney include making financial decisions, paying bills, filing taxes, signing legal documents, real estate decisions, and medical and healthcare directives. An attorney will help you plan a contract that details exactly what capabilities you want the agent to have on your behalf.
A general durable power of attorney will be effective on the date you decide. You can choose to have it active immediately, on another specific date, or only if you become incapable of making your own decisions.
As the principal, you are in control of changing the agent(s) named in the contract, the terms, or even canceling a general durable power of attorney directive. If you become incapacitated and another party wants to override the power of attorney, they would need to petition the court and give a valid reason.
If you don’t have a durable power of attorney and you become incapacitated, it can be a long process for your family members to petition the courts. This can mean financial, legal, and medical decisions during this lapse might not be in your best interest.
Each state has different power of attorney laws. To designate a power of attorney, it is best to meet with a lawyer who can help you name the person(s) you want to make decisions on your behalf.