AgeLab outlines very well the four types of power of attorney, each with its unique purpose:
1. General power of attorney. A general power of attorney is comprehensive — it gives a senior’s agent power to act on their behalf financially and legally. General power of attorney can be used for healthy parents who want help with financial or personal matters.
The three most common types of powers of attorney that delegate authority to an agent to handle your financial affairs are the following: General power of attorney. Limited power of attorney. Durable power of attorney.
5 types of power of attorney, explained
How Health Care Directives Differ. In almost all cases, a power of attorney does not give someone the authority to make health care decisions for you. Essentially, health care directives empower a trusted person to make medical decisions on your behalf.
A general power of attorney ends the moment you become incapacitated. A durable power of attorney stays effective until the principle dies or until they act to revoke the power they’ve granted to their agent. But there are a handful of circumstances where courts will end durable power of attorney.
The main difference between a Power of Attorney and an Enduring Power of Attorney is that an enduring power still has effect even after you loose mental capacity. A Power of Attorney can also be cancelled at anytime. However a Power of Attorney ceases to operate if you lose mental capacity.
A general power of attorney allows the agent to make a wide range of decisions. This is your best option if you want to maximize the person’s freedom to handle your assets and manage your care. A limited power of attorney restricts the agent’s power to particular assets.
General Durable Power of Attorney Definition A general durable power of attorney both authorizes someone to act in a wide range of legal and business matters and remains in effect even if you are incapacitated. The document is also known as a durable power of attorney for finances.
A standard power of attorney, whether it is general or limited, would no longer be in effect if the agent was to become incapacitated. Durable powers of attorney do remain in effect upon the incapacitation of the grantor, and this is why these devices are used for incapacity planning purposes.
A durable power of attorney simply means that the document stays in effect if you become incapacitated and unable to handle matters on your own. To cover all of the issues that matter to you, you’ll probably need two separate documents: one that addresses health care issues and another to take care of your finances.
What Are the Disadvantages of a Power of Attorney?
The 5 Different Types of Power of Attorney
Advance directives generally fall into three categories: living will, power of attorney and health care proxy. LIVING WILL: This is a written document that specifies what types of medical treatment are desired.
A financial power of attorney lets you give someone legal authority to make financial decisions in the event you’re unable to. This can include managing finances, defending lawsuits, and paying bills. A medical power of attorney, on the other hand, only allows your agent to make decisions about your medical affairs.
While the health care proxy is the one who makes the health care decisions, the person who holds the power of attorney is the one who needs to pay for the health care. You should also talk to both agents about your wishes for medical care so that they both understand what you want.