It can be hard to consider a future where you cannot take care of yourself. However, age and medical conditions can make it difficult for people to make decisions in their own best interest. When drafting an estate plan, it may be crucial to include a power of attorney (POA).
A POA is a legal arrangement that allows an agent to act on behalf of the principal. There are several benefits to having a POA. Here is what you should know:
What are the different types of powers of attorney?
There are two different types of powers of attorney. A medical POW can make medical decisions on a person’s behalf, including end-of-life care decisions. A financial POA manages any financial matters, including tax filings and depositing Social Security checks. While a medical POA and financial POA can be given to different people, a single agent can be given both medical and financial POA rights under a general POA.
A POA may be limited, durable or springing. A limited POA can act on behalf of the principal in specific instances, such as managing real estate. A durable POA allows an agent to have specific duties for financial matters at any time, even if the principal becomes incapacitated. A springing POA becomes effective if a principal becomes incapacitated, giving them the right to make major decisions over a person’s life.
Is a power of attorney and a living will the same?
A living will allows a person to make end-of-life care decisions before they become incapacitated. Doctors can follow the last wishes of a person listed in a living will, such as whether or not they would want to be placed on life support or have their body donated. A living will is not a power of attorney and can only make limited decisions. Alternatively, a power of attorney can make time-sensitive decisions that a living will cannot.
If you want to learn more about powers of attorney, you can reach out for legal guidance.