A power of attorney (POA) is a legal document authorizing one person to act on behalf of another. It can be used in a variety of situations, ranging from managing a person’s finances and medical care to making decisions on their behalf. Depending on the situation, there are several different types of POA that can be used.
Limited Power of Attorney
The most common type of power of attorney is a limited power of attorney. This document grants the attorney-in-fact (the person given the authority to act on behalf of another) specific authority to act on behalf of the principal (the person granting the authority). This type of POA is generally used for short-term or specific tasks, such as selling a property or signing documents on behalf of the principal.
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General Power of Attorney
A general power of attorney is similar to a limited POA in that it grants the attorney-in-fact specific authority. However, it generally gives them greater authority, allowing them to handle a wider range of tasks. This type of POA is often used when a person is unable to act on their own behalf, such as when they are overseas or unable to make decisions due to a medical condition.
Durable Power of Attorney
A durable power of attorney is similar to a general POA in that it grants the attorney-in-fact greater authority. The difference is that the authority granted with this type of POA remains in effect even if the principal becomes incapacitated or otherwise unable to make decisions. This type of POA is often used when a person is unable to act on their own behalf due to a disability or long-term illness.
Springing Power of Attorney
A springing power of attorney is similar to a durable POA in that it remains in effect even if the principal is unable to make decisions. The difference is that this type of POA only takes effect when certain conditions are met, such as the principal becoming incapacitated. This type of POA is often used when a person wants to ensure that their wishes are followed in the event of their disability or illness.