5 Types of Power of Attorney and How to Use Them

 Posted on August 09,2024 in Estate Planning

Power of attorney is a legal tool often used in estate planning that authorizes one person to act and make decisions on behalf of another. The person who is granted this authority is called an agent, and he or she may perform certain actions on behalf of the principal individual. Anyone who is 18 or over and of sound mind may grant an agent power of attorney.

There are various reasons why a person might want to confer this authority on someone else. This article will discuss five types of power of attorney and how to use them, as well as how to contact an experienced Texas estate planning lawyer.

Durable Power of Attorney

A durable power of attorney, also referred to as statutory power of attorney, is so named because it allows an agent to act on your behalf even after you have become incapacitated. An agent with a durable power of attorney can make decisions about:

• Your medical care
• Your finances
• Legal matters that concern you

People often use a durable power of attorney in estate planning, especially when the principal is elderly. An elderly woman diagnosed with a progressive neurological disease, for example, might grant her daughter a durable power of attorney to ensure the continuity of her assets.

Springing Power of Attorney

A springing power of attorney authorizes an agent to act on behalf of the principal at a later date and is usually triggered by a certain event. For example, a principal might grant a power of attorney that only takes effect if he or she becomes incapacitated. A common approach is to include a provision in the power of attorney document stating that if at least two physicians confirm the principal is no longer able to manage his or her finances, the agent’s power of attorney will be activated.

General Power of Attorney

A general power of attorney authorizes an agent to perform a wide range of tasks on behalf of the principal. However, unlike a durable power of attorney, a general POA ends if the principal becomes incapacitated. Possible uses of a general power of attorney include elderly individuals who want to ease the burden of managing their estates or principals who need someone to manage their affairs overseas. A general power of attorney is also useful for those who want the convenience of having someone else manage their estates for them.

Limited Power of Attorney

Unlike a general POA, a limited power of attorney grants an agent authorization to act on the principal’s behalf only for a specific task, set of duties, or a certain time frame. It is used when the principal wants to continue managing his or her own affairs but needs assistance with completing certain tasks. For example, someone who owns property abroad and wants to sell it may give limited power of attorney to an agent who can do so in his or her place.

Medical Power of Attorney

A medical power of attorney allows someone to make medical decisions on the principal's behalf and usually takes effect if the principal becomes incapacitated. It authorizes an agent to speak with physicians and medical staff, approve or deny medications and tests, and take other important actions.

Contact a San Antonio, TX Estate Planning Lawyer

Any power of attorney should be drafted by a highly skilled San Antonio, TX estate planning attorney. At The Law Office of Ryan C. Moe, PLLC, we use our experience and meticulous attention to detail to create strong powers of attorney that protect you and your assets. Call 210-861-6000 for excellent legal representation today.