People often wonder what a power of attorney is, what it entails, and if they need it for themselves. Giving someone or being given power of attorney is a big deal and a display of a person putting their trust into a person to do what they would on their behalf. That is what power of attorney really is; the transfer of power in the form of a document that allows others to manage you and what you own when you are unable to do so.
When you give someone the power of attorney, they become the attorney in fact and have the right to sign on your behalf because that is the power you granted them. Power of attorney is not a one size fits all kind of document as there are multiple types for various reasons.
Types of Power of Attorney
General Power of Attorney
The most common form of power of attorney is the general power of attorney. This is given to a person or group to do everyday life business on your behalf, including business transactions, hiring someone, or getting a birthday present for someone. Often, you use your power of attorney when you are not home and are away on either a vacation or business trip.
By signing off power of attorney to someone you trust, you make sure that your business and everyday life continues to run smoothly even without your presence. Besides your business matters, this POA can be used to deal with your finances since by signing them off you can leave it in someone else’s hands to deal with what you might not be an expert in.
Special Power of Attorney
The type of power of attorney, which allows you to specify what a person’s ability entails is the special power of attorney. This means that the person giving you power of attorney can either permit you to do everything for them or only one specific thing that they need to be taken care of for them.
For instance, when someone gives you the special power of attorney, they can grant it to you only for managing real estate. They can also allow you the ability to buy and sell property, invest and pay bills all in the same document. This type of power of attorney sign off is usually done because the person does not have the time or the health to do certain things themselves.
Health Care Power of Attorney
A health care power of attorney is one that gives the attorney, in fact, the ability to make decisions on your behalf if you cannot make them on your own solely for medical reasons. This can include being mentally or physically ill, unconscious, or in any other state that can’t allow you to make these decisions for yourself.
Typically, the health care power of attorney is used to settle your medical bills, insurance, and finances from the costs of staying in a hospital or care center. This POA can also sometimes allow you to give your recommendation on whether or not a person under life support should remain on or be taken off it.
Durable Power of Attorney
A durable power of attorney is designed to maintain whatever POA you’ve already had in place to maintain their position. This is usually done if you have fallen ill or become generally weaker and have already had a POA in place. The durable power of attorney makes sure that you are aware of the installments in place and that you trust someone to take care of your legal and financial needs for you.