Managing bills, bank accounts, and investments.Buying and selling property and other assets.An attorney in fact can handle many types of transactions on your behalf, including: The person you appoint in your POA is known as your agent, or attorney in fact, although they don't have to be a lawyer. Even if your POA is immediately effective, you don't have to use it right away-you can continue to handle your own finances just as you always have. The POA can take effect immediately or can become effective only if you are incapacitated. The document is also known as a durable power of attorney for finances. What is a general durable power of attorney?Ī general durable power of attorney authorizes someone to act in a wide range of legal and business matters and remains in effect even if you become incapacitated. Most estate plans include durable POAs along with a last will and testament. There are two types of durable POAs-one for financial matters and one for medical matters-and they are usually contained in separate documents. The purpose of a durable POA is to plan for medical emergencies, cognitive decline later in life, or other situations where you're no longer capable of making decisions. Durable power of attorneyĪ durable power of attorney also authorizes an agent to handle financial and legal matters for you, but it includes unique wording that makes it effective even if you become incapacitated. For example, a POA might authorize a car dealer to register your new vehicle for you, enable a real estate agent to sign certain closing documents for you, or authorize an agent to handle your finances while you're out of the country for an extended time. You can use an ordinary POA to designate an agent to handle certain types of financial transactions or sign certain documents on your behalf. It's commonly used to make it easier and more convenient to conduct business transactions. Power of attorneyĪn ordinary power of attorney expires if you become mentally incompetent, or on the date or event stated in the POA document. Powers of attorney can be ordinary or durable. General powers of attorney cover a wide range of transactions, while limited powers of attorney cover only specific situations. power of attorneyĪ power of attorney is a legal document that allows someone else to handle your legal, medical, or financial affairs. Having these documents in place helps eliminate confusion and uncertainty when family members have to step in to handle finances or make tough medical decisions.ĭurable power of attorney vs. If a power of attorney is durable, it remains in effect if you become incapacitated for any reason, including illness and accidents.ĭurable powers of attorney help you plan for medical emergencies and declines in mental functioning. A power of attorney (POA) authorizes someone else to handle certain matters, such as finances or health care, on your behalf.
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