Along with understanding your end of life plan, estate plan, trust and action items regarding burial, transfer of assets and closure of financial accounts- establishing the powers of attorney involved in all this planning is the critical step that should not be overlooked. In the event of family catastrophe, when decisions must be made and executed quickly, sometimes that responsibility must fall to a trusted attorney. That is why understanding the various types of powers of attorney and implementing them properly into your will and estate plan is vital to its ultimate success or failure.
Powers of Attorney Lingo Explained:
• A “general” power of attorney is one that is written to be very broad, with the intention of giving the agent the widest possible range of actions which he can handle for the principal.
• A “limited” power of attorney is one that is specific and narrow, with the intention of giving the agent a limited set of actions which he can handle for the principal.
• A “durable” power of attorney can be either general or limited. Durability does not address the range of actions which can be taken; it addresses when the actions can be taken. When a power of attorney is durable, the agent may act for the principal before and after the principal becomes incapacitated. When a power of attorney is not durable, the agent may act for the principal only before the onset of incapacity.
• A “springing” power of attorney can also be either general or limited. A springing power of attorney is always durable, because it is effective only after the principal becomes incapacitated. The agent may act only after the principal is incapacitated. If the principal remains capable of acting for himself, the agent has no authority to act.
Have questions? Speak with one of our expert elder law attorney’s today, 562-627-9600.
