What Are the Different Power of Attorney Types and When Should You Use Them
- DATE: May 21, 2017
- POSTED IN: Blog , Elder Law , Family Law
- POSTED BY: Gene Kirzhner
Getting the power of attorney means entrusting someone with your legal responsibilities. Power of attorney works in a serious manner, often determining your legal abilities and successes. While many seek arrangements, few know the different types and how they serve clients. There are so many different ways to seek a power of attorney arrangement. Finding the best arrangement for yourself goes a long way towards getting done the legal procedures and more you wish to complete. In the end, knowing the correct course of action looms large. Knowing why the correct course of action works best helps you make that decision as well.
Though few know the ins and outs of power of attorney, many know the helpfulness of the general umbrella. However, power of attorney breaks down into many sub-sections. Understanding the sub-sections works best in ensuring you receive the proper assistance for your own situation. With that in mind, let’s look through the different types of power of attorney arrangements. Looking at the different types and when to use them helps present you with solutions for whichever problems you face.
The Different Legal Power of Attorney Types and When Should You Use Them
Durable Power of Attorney serves as the most popular scenario. An Attorney is placed in charge of your financial matters. The power continues even past your no longer being able to handle your own manners, a key legal component. The major piece in a durable scenario is that the attorney does not work under any set time period. When you pass away, the agreement becomes null. From the time you no longer feel able to handle your own manners until death, the attorney takes over.
Judging by the title alone, the agreement works similarly to a durable power of attorney. However, of course, differences exist between the two. Non-durable works for a set period of time. Often this means you hire who you work with for a particular transaction or any other singular move. Non-durable becomes null and void once the transaction finishes, or if you become incapacitated. In the case of being fearful of becoming incapacitated during the work, the better arrangement serving you would be the durable power of attorney agreement. Non-durable simply works as a one-time, job finishing agreement. Everyone ends up happy after one time working together.
The medical power of attorney works specifically to medical decisions. The agent hired makes the health care decisions of the party who hires them. This works in the case of the hiring person no longer being able to make their own decisions. The reasoning behind the inability to make their own decisions likely stems from being incapacitated. However, for this agreement to work, normally there must be doctors approval. This ensures your health through someone you trust.
The most unique of the different types of power of attorney, springing power of attorney works in a specific way. Springing power of attorney becomes effective at a future time. This is when and only when a specific event happens to trigger the agreement. Springing power of attorney can work as either a durable or non-durable agreement. The agreement depends on what the parties involved agree upon.
In a springing power of attorney agreement, the principal party (the hiring party) must be one of two things. They must be out of the country or incapacitated in order for the attorney to take over the decision making. These agreements range from small to large, but ensure whatever the principle party wishes to know receives handling. The specificity of this agreement separates it from the rest. This also makes it an agreement worth considering for scenarios that pop up.
Special or Limited
The final power of attorney option we present to you is the special or limited power of attorney agreement. This works as a one-time agreement between the principal party and the agent. This agreement is often reached due to the principal party feeling unable to act on their own behalf. Still, the principal party wants to see something done anyway. When the principal party cannot get the job done for medical context, this agreement becomes a possibility. The agent must act on the principal party’s wishes, however. All choices made stem from the principal party’s instructions. While the agent makes the moves, they do so following the principal party’s guidelines.
This often includes the sale of a particular property or a one-time transaction. Business maneuvers that carry great importance but do not need repeating fall into this category. The agreement does not fall into durable or non-durable. The agreement works that way because of it being a one-time arrangement between the principal party and the agent. This unique deal works well for many looking for help.