Estate planning is essential, not just for the purposes of distributing assets once you are gone, but also for outlining how your estate is handled if you become incapacitated. A power of attorney (POA) gives someone* you trust the legal power to make decisions on your behalf.
A power of attorney is an essential part of estate planning for situations in which you cannot act on your own behalf or when you want to designate another person to handle a legal transaction.
Types of Powers of Attorney?
A power of attorney is a legal designation that assigns the legal right to make decisions on your behalf to a person or set of persons. A POA is sometimes referred to as an agent or an attorney-in-fact and can be a temporary or permanent designation.
There are different types of POA, such as:
Also called conditional power of attorney, this type of POA goes into effect when a condition is met, such as incapacitation due to illness or injury. Springing Durable POA grants your agent the right to make legal decisions for you once you sign the document. However, your agent retains POA even in the event of your incapacitation.
A general POA grants your agent the right to make legal decisions for you in almost every area, including medical, legal, and financial matters.
A medical POA gives your agent the power to make decisions regarding your health and medical care.
A financial POA allows your agent or agents to make legally binding financial decisions on your behalf.
Why Set Up a Power of Attorney?
Setting up a POA is beneficial for several reasons, including:
- Handling business transactions
- Selling property
- Making business decisions in your absence
- Take care of legal decisions due to permanent or temporary incapacitation
- Handle your estate upon death
Powers of Attorney Considerations
When setting up a POA, consider the following:
- Why are you designating a POA?
- What areas do you want to give your agent POA over?
- Who do you want to have the POA designation?
- Under what circumstances will the POA be in effect?
You can give multiple people or entities a power of attorney to act on your behalf too.
It is important to designate someone you trust to be your agent in your POA, such as a trustworthy or family member capable of making sound legal decisions. If you do not assign a POA for your estate or business, the courts may have to designate an agent on your behalf.
Create your Power of Attorney With Anzen Legal Group
Setting up a POA for your estate or business helps protect your legacy and business. With a POA in place, you can avoid confusion if you become unable to act on your own behalf. Having a POA also helps streamline business transactions when you are unable to be present.
Work with Anzen Legal Group to create your POA for your business or personal estate today.