Power of Attorney (POA) is a legal document that grants authority to an individual (known as the “agent” or “attorney-in-fact”) to act on behalf of another person (known as the “principal”) in various matters. There are different types of power of attorney, each serving a specific purpose and scope of authority. Here are some common types of power of attorney:
1. General Power of Attorney
A General Power of Attorney grants broad authority to the agent to act on behalf of the principal in various legal and financial matters. This type of POA allows the agent to make decisions and take actions on behalf of the principal, such as managing finances, signing contracts, or handling real estate transactions. It remains in effect until the principal revokes it or becomes incapacitated.
2. Limited Power of Attorney
A Limited Power of Attorney provides the agent with specific and limited authority to act on behalf of the principal in a particular matter or for a specific period. It is often used when the principal is unable to handle certain tasks temporarily, such as signing documents during a period of absence or authorizing someone to handle a specific financial transaction.
3. Durable Power of Attorney
A Durable Power of Attorney is a type of POA that remains in effect even if the principal becomes incapacitated or mentally incompetent. It allows the agent to continue acting on behalf of the principal during such circumstances. A durable POA is commonly used to ensure ongoing management of the principal’s affairs in case of incapacity.
4. Medical Power of Attorney
A Medical Power of Attorney, also known as a Healthcare Power of Attorney or Healthcare Proxy, grants authority to the agent to make medical decisions on behalf of the principal if the principal becomes unable to make those decisions themselves. This type of POA is often used to appoint someone to act as the principal’s healthcare agent and make medical treatment choices based on the principal’s preferences or best interests.
5. Springing Power of Attorney
A Springing Power of Attorney becomes effective only upon the occurrence of a specific event or condition, typically the incapacitation or disability of the principal. It allows the agent to act on behalf of the principal when the specified triggering event occurs. This type of POA provides a safeguard to ensure that the agent’s authority is granted only when necessary.
It’s important to note that the laws governing power of attorney can vary by jurisdiction, and specific requirements and limitations may apply. Consulting with an attorney or legal professional is recommended when creating a power of attorney to ensure compliance with applicable laws and to address individual circumstances and needs.