There are different types of POA, each with its own specific set of powers and limitations. But in general, POA allows the holder to make decisions on your behalf and take care of your affairs when you’re unable to do so yourself. 

What Does Power of Attorney Mean?Couple of seniors reading contract for power of attorney at home

If you become incapacitated, someone will need to step in and make financial and legal decisions on your behalf.  A power of attorney is a legal document that designates another person to handle your financial and legal affairs on your behalf. The POA can be used for a specific transaction or for all legal and financial matters. The contract can be terminated at any moment as long as you are mentally stable. Once you become incapacitated, however, the POA becomes irrevocable. It is important to choose someone you trust completely to be your POA. This person should be competent, responsible, and honest. You should also discuss your wishes with this person ahead of time so that they are clear about what you want them to do on your behalf.

Are There Different Types of POA?

Here are the four most common types of POA. Deciding on the right type will be dependent on your situation and what you need.

  1. Durable: This type of POA remains in effect if you become incapacitated and are unable to make decisions for yourself. It allows you to appoint someone to make financial and legal decisions on your behalf.
  2. Springing: Unlike a durable POA, a springing power of attorney only goes into effect if you become incapacitated. You can specify when and how it will take effect.
  3. Limited: A limited POA gives the person you appoint (called the “agent”) very specific powers, such as signing a contract on your behalf or selling a piece of property. It can be used for a specific transaction or for a short period of time.
  4. General: A general power of attorney is similar to a durable POA in that it remains in effect if you become incapacitated. However, it gives the agent much broader powers, including the authority to make financial and legal decisions on your behalf.

How to Establish POA

Establishing power of attorney is an important step in ensuring your affairs are in order. It allows you to appoint someone to make financial and legal decisions on your behalf in the event that you become incapacitated. Without it, your loved ones would have to go through the court system to have a guardian appointed, which can be time-consuming and expensive. To establish it, you will need to fill out a POA form and have it notarized. You will also need to choose someone you trust to serve as your agent. Once the form is complete, you should keep it in a safe place where your agent can easily find it. Establishing it may seem like a daunting task, but it is an important step in protecting your interests.

Choosing a POAWoman Helping Senior With Paperwork for choosing power of attorney

When you give someone power of attorney, you’re giving them legal authority to make decisions on your behalf. So it’s important to choose someone you trust implicitly to act in your best interests.

There are a few key factors to consider when selecting a POA. First, you’ll want to choose someone who is responsible and level-headed. This person will need to be able to handle the weight of making decisions on your behalf, so you’ll want to be confident they won’t buckle under pressure.

Second, you’ll want to pick someone who is organized and detail-oriented. This person will need to keep track of your finances and legal documents, so they should be comfortable handling paperwork.

Finally, you’ll want to choose someone who lives close by. This way, they can easily act on your behalf if the need arises.

If you take the time to carefully select your POA, you can rest assured knowing that your affairs are in good hands.

Gioffre & Schroeder Law

If you’re looking for a law firm that can help you establish the power of attorney, Gioffre & Schroeder is a perfect choice. We have years of experience helping clients choose the right POA agent and can guide you through the process step-by-step. Contact us today to learn more!