If you have never done estate planning before, you may not understand what powers of attorneys are. The majority of people believe a simple last will and testament can be enough to guarantee that their assets reach the right person. Frankly, your last will is just the tip. Modern estate plans are more in-depth and comprehensive, as they aim to provide you and loved ones with all kinds of benefits, both during your life and after. More bonuses?
A power of lawyer is a legally binding document that allows someone to designate a representative to act on behalf of them when necessary. Imagine how many times you made important decisions because your loved ones couldn’t. If you are the parent or guardian of a child, you will understand just how much they depend on you. Parents act as a safety net for children, keeping them away from danger.
But when an adult becomes independent, parents cannot control their lives anymore. It is important to ask who would be responsible for fulfilling your responsibilities if you were to become incapacitated and/or go missing. Who will manage your financial and medical matters?
San Francisco estate planning attorney explains 5 types of powers of Attorney:
1. Durable Powers Of Attorney
This durable power of attorney enables an agent appointed by you to jointly manage the affairs of your estate. This agent can continue to act for you if your mental capacity is impaired. You can retain your control over financial and health care matters so long as you remain in good mental health. Normaly the power of attorneys is valid as soon you sign the legal document. However, you can condition the transfer. When you are incapacitated you can designate the person of choice to take your place. The power of attorney is revocable. At any time, they can be cancelled or modified. When you die, your power of attorneys expires.
2. Non-durable power of attorney
Nominated agents for non-durable powers of attorney are only allowed to work while the principal is still alive. They lose their authority if they become incapacitated. A durable power-of-attorney can be used to make decisions about your finances and medical care if, for example, you fall unconscious. An individual with nondurable powers of attorneys can’t do anything on your behalves if they are designated as such.
3. General Powers Of Attorney
The general power-of-attorney is also known as a financial power-of attorney. This is because the chosen agent can control many economic matters for the estate. The duties and sanctions of the general power of attorney include: payment, entry/end contracts, buying/selling, managing, transactions, making investment, collecting revenue and compensating creditors.
4. Medical Power of attorney
A medical power or advance medical directive will allow you to choose who will manage your healthcare if you are clinically disabled or compromised. This power allows the person granted to decide on what type of treatment or procedure you will receive if you are incapacitated. This person also has the final word on any medical matter, such as organ donation or artificial life-support, releasing medical reports and surgery.
5. Limited Powers Attorney
The limited power permits your designated agent to represent you for a particular situation and/or objective. This type of power of attorney can be created several times, with each agent receiving different duties/powers. This type of Power of Attorney can be terminated when a time is specified or the purpose has been achieved.