A power of attorney, or POA, is a document granting one party the authority to act on behalf of another party. Although you might associate powers of attorney with estate planning, these arrangements can come in handy in all kinds of scenarios. Here are just a few of the most common types of power of attorney and when they might apply.
3 Kinds of Powers of Attorney
A general power of attorney gives the agent fairly broad authority to act on the grantor’s behalf. If you create this kind of arrangement, you’re essentially allowing someone to manage all aspects of your finances. However, the agreement may not necessarily remain in effect indefinitely. For example, if you plan on traveling abroad for an extended period of time, a general power of attorney might allow someone to manage your finances only for as long as you’re gone. Likewise, a general power of attorney can also go into effect if you ever become incapacitated.
A special power of attorney gives the agent limited powers to act on behalf of the grantor. You might use this arrangement to finalize a real estate transaction, for example, if you want the attorney to attend the closing for you. Special powers of attorney are also used to give business partners the authority to make decisions for one another and to allow friends or loved ones to care for any minor children as needed. For example, when a single parent deploys with the military, he or she must include a special POA in the family care plan.
3. Health Care
A health care power of attorney is a critical component of every comprehensive estate plan. This document lets the agent make medical decisions on behalf of the grantor. Health care POAs are typically accompanied by living wills. In a living will, you can state your wishes regarding end-of-life care and medical procedures like organ donation.
If you want to create a power of attorney, turn to the knowledgeable team at Pepping, Balk, Kincaid & Olson, Ltd. for help. Practicing out of Silvis, IL, this firm is led by a team of lawyers who have more than 75 years of combined experience in the legal field. Every year, they represent more than 2,000 clients and ultimately help them navigate all kinds of legal proceedings. To request a consultation with a member of their team, call (309) 755-5096. Visit them online to learn more about their legal services.