![]() ![]() The person you give the power of attorney to is known as an attorney-in-fact or agent.When you give power of attorney to another person, you become the principal.In other words, a contingent POA kicks in when a specific event occurs, while a durable POA covers what is designated from the day it is executed.Ī few aspects to consider about your power of attorney: However, if you later regain that capacity, the powers granted might cease at that time. These documents grant certain powers to others in the event you are deemed incapacitated or unable to make important decisions. You can give someone the authority to decide whether you are still able to make your own decisions. For example, you could have it come into effect only when you can no longer make your own decisions. ![]() ![]() With a contingent POA you can choose when it will come into effect. The alternative to a durable POA is a contingent POA (also called a springing power of attorney), which only vests power under certain circumstances. A durable POA is one that continues to be in effect even during an individual’s incapacity or incompetence. For instance, if you wanted to ensure someone could manage your finances or assets while you were out of town, a durable POA would grant them this power. Contingent Power of AttorneyĪ durable POA is valid from the day it’s executed. This means that if you want a trusted individual to have access to your medical information and who can make important financial decisions for you in the event you are facing a serious illness-or when something unexpected happens-you want a durable POA rather than a general POA. Overall, general powers of attorney cover a wide range of transactions.Ī general power of attorney ends when you become mentally incapable, due to sickness or injury, and are unable to handle your own affairs, while a durable power of attorney does not end under those circumstances. You can grant your agent additional powers such as maintaining and operating business interests or making transfers to living trusts. This power can be limited to a specific transaction or can cover many different circumstances.Ī general power of attorney gives your agent authority to conduct any type of business on your behalf, including filing your tax returns, managing your bank accounts, buying, selling, or managing real estate or other property, entering contracts, and settling claims. Suppose you are out of town on business quite often POA could allow another person to handle your finances during those times you are gone. Differences Between General and Durable Power of AttorneyĪ power of attorney gives another person the authority to act on your behalf when you are unable to do so on your own. As the name implies, a POA is a legal document that gives another person the power to act as your attorney – even if they are not one – managing legal and financial affairs in your name. Most people have at least heard of a power of attorney, or POA. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |