A power of attorney (POA) grants someone the legal authority to act on your behalf. Because there are many scenarios in which you may need a third party to manage your affairs, there are several different kinds of POA arrangements. An estate planning lawyer can help you determine precisely which arrangements you should implement after evaluating your situation. To discuss the different types with confidence, here's what you should know. 

What Are the Types of Powers of Attorney?

As the name implies, a general power of attorney gives the agent a broad range of rights. Because this arrangement is so comprehensive, it’s wise to include one in your estate planning documents so you’re prepared for all eventualities. If you were to ever become incapacitated, for example, the attorney-in-fact would be able to manage all your personal financials while also operating any existing business interests. 

A special, or limited, power of attorney allows the agent to perform only certain actions on the principal’s behalf. For example, you might create a special POA so your realtor can close on a vacation home you're selling without your attendance or so your property manager can collect rent for you. 

A health care POA gives the attorney-in-fact the right to make medical decisions on the principal’s behalf. Should you ever become unable to advocate for yourself, your agent would instruct the medical team on how to proceed. 

What Should I Look for in an Attorney-in-Fact?

Naturally, the agents you name in any POAs should be individuals whom you trust. Despite the fact that agents are also called “attorneys-in-fact,” they don't necessarily have to be lawyers. They should, however, be familiar with the various roles you assign them. 

For example, if your brother is a financial advisor, he may be a good candidate for managing your money. Meanwhile, if your sister is a nurse, she may be the best person to make medical decisions on your behalf. It’s okay if no one in your circle has professional experience completing the various tasks you’re assigning, though, as long as they're committed to protecting your best interests.

How Can I Make the Attorney-in-Fact’s Role Easier?

An estate planning attorney can review all your documents to check that they’re both legally binding and unambiguous. This is perhaps the best way to ensure your agents will be able to carry out your wishes.

It’s also advisable to create a living will. This document essentially states your preferences regarding end-of-life care. As such, it can serve as a kind of blueprint for the attorney-in-fact who is assigned the task of making medical decisions on your behalf. 

If you need help creating powers of attorney or other critical estate planning arrangements, turn to Goicoechea, DiGrazia, Coyle, & Stanton. Located in Elko and serving clients throughout all of northeast Nevada, this law firm has roots dating back to 1976. Today, their seasoned team has more than a century of combined experience in the legal field. To request a consultation with one of their lawyers, reach out on their website or call (775) 738-8091.