A power of attorney is a legal document that allows you to appoint another person to manage your affairs in the event you become incapacitated. There are different types of power of attorneys. Each type permits the person you appointed, known as the “attorney-in-fact,” to exercise different degrees of control over your affairs. They may be able to control your finances, make decisions about your health, or both. Most people do not realize there are different variations of this designation. A People’s Choice can help you prepare the document that best fits your needs.

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Read on to learn more about what a power of attorney can and cannot do for you.

Power of Attorney Types

Four main types:

  1. General Power of Attorney

This legal document that allows a person to make broad decisions on your behalf. This means they can make business decisions and enter into contracts on your behalf. Most countries recognize this type of power of attorney. It is also the most common type included in estate plans, so this is the “default” for many people. However, it is not your only power of attorney option.

  1. Health Care Directive

This document (also known as a Healthcare Directive) allows your attorney-in-fact to make medical decisions on your behalf. You can specify your preference on being left on life support and what to do with your organs in the event of death.

  1. Special Power of Attorney

This legal document specifies what the attorney-in-fact can or cannot do for you. For example, you might want to create a special option to enable an individual to enter into real estate transactions but not necessarily make other types of decisions for you. This document can also be called a Limited Power of Attorney.

  1. Durable Power of Attorney

    This document protects you in the event you become mentally incompetent due to an illness. The durability provision will keep your existing power of attorney in effect for a specified period of time.

What You Can Do

Your attorney-in-fact may be able to make decisions as to where you live, what you eat, and the medical treatment you may receive. The attorney-in-fact can file taxes on your behalf, make investment decisions for you, and apply for public health benefits.

What You Cannot Do

Your attorney-in-fact cannot make changes to your will or living trust. The agent cannot act against your best interest and must uphold his/her fiduciary duties while the POA is in effect. In addition, the POA cannot assign duties to another party to act on your behalf.

Contact A People’s Choice for more information about creating your estate plan. We can all the necessary estate planning forms that suit your estate plan. We have staff available by phone 7 days a week. Call us at 800-747-2780.

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A People’s Choice can save you hundreds of dollars by preparing your legal documents instead of an expensive attorney!

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