Understanding The Different Types Of Power Of Attorney
An important part of estate planning is determining which loved ones will have power of attorney for you in the event you are incapacitated or otherwise unable to make your own decisions. By having power of attorney, they have the right to make decisions on your behalf that you cannot make yourself, such as decisions regarding your finances or medical care. An individual with power of attorney has the duty to act in his or her loved one’s best interest.
The individual who grants power of attorney to a loved one is known as the principal. The party who has power of attorney is known as the agent. When power of attorney is granted, the agent has the right to act on behalf of the principal. There are different types of power of attorney that can be granted depending on the principal’s circumstances.
General Power of Attorney
General power of attorney is the most comprehensive type of power of attorney. With general power of attorney, the agent has all the rights the principal has to make personal decisions, such as the decision to make a purchase or a sale, to make medical decisions, and to manage day-to-day affairs like paying bills. General power of attorney can be kept in place until the principal’s death or incapacitation. He or she can also opt to rescind general power of attorney at any point after it goes into effect.
Springing Power of Attorney
This type of power of attorney is so named because it springs into action when a specific event occurs, such as the principal becoming incapacitated or leaving the country. Springing power of attorney can be durable or non-durable and it can be used for one specific area of interest or for any decisions that must be made for the principal.
Limited Power of Attorney
Limited power of attorney grants the agent power of attorney for a specific task. This type of power of attorney expires once the task is complete. Tasks that may be authorized this way include transactions and property transfers.
Durable Power of Attorney
Durable power of attorney is permanent power of attorney for a principal from the moment he or she becomes incapacitated to his or her death. It can be general, permitting the agent to make all personal decisions for the principal, or limited to only one or a few areas like finances or healthcare.
In contrast, an individual can also grant a loved one non-durable power of attorney, which grants the loved one power of attorney only for a specific window of time.
Work with an Experienced Tampa Estate Planning Lawyer
For legal help with the estate planning process, work with our team of experienced Tampa estate planning lawyers at Bubley & Bubley, P.A. Contact our office today to schedule your initial consultation with us, during which we can assess your estate planning needs and guide you toward solutions that provide them and protect you and your assets.