Life is unpredictable, and unforeseen circumstances can arise at any moment. Establishing a power of attorney (POA) is a proactive step that ensures your affairs are managed according to your wishes, even when you’re unable to do so yourself. Whether because of illness, injury, or absence, a POA empowers a trusted person to make important decisions in your stead.
The process of setting up a POA can be intimidating and complicated. At Crosby Law Firm, our estate planning lawyer in Rockford is here to help. Our firm has extensive experience managing living wills and trusts, estates, and other life-planning legal instruments.
Contact us to schedule a free initial consultation. We’ll help you protect your estate with a power of attorney and design a plan with your best interests in mind.
What Is a Power of Attorney (POA)?
A POA is a legal document that lets you choose someone to manage your affairs should you become incapacitated. The individual chosen is the agent, and the person who appoints the agent is called the principal. Essentially, the principal chooses who will make choices for them if they cannot do so in the future. A POA is fully customizable, so the principal can choose the powers they give to their agent.
Below, we delve into some specifics surrounding the role of a power of attorney agent. We also talk about the different types of POAs.
What Are the 4 Types of Power of Attorney?
There are four main types of power of attorney: limited, general, durable, and springing. Each one gives different levels of authority and serves a specific purpose. Understanding how they work can help you choose the right option to protect your legal and financial interests.
For healthcare decisions and financial management, there are also medical and financial POAs. We will discuss these types, as well as the four main types of POAs you can set up.
Limited Power of Attorney
A limited POA gives the agent authority to handle specific tasks or decisions for a set period of time. For example, a principal might use it to let someone sign documents for a real estate closing while they are out of town.
General Power of Attorney
A general POA gives broad powers to your agent, allowing them to manage most financial, medical, and legal matters. The POA document should outline the specific powers granted. These types of POAs typically end when they are revoked or upon the principal’s death.
Durable Power of Attorney
A durable POA remains valid even if you become unable to make decisions. This ensures that someone you trust can make them on your behalf. Typically, a durable POA covers a variety of matters and is used by individuals who are anticipating future incapacity. This POA only ends upon the principal’s death, by revocation, or if the agent resigns.
Springing Power of Attorney
A springing POA only takes effect under specific conditions, usually when the principal becomes incapacitated. It “springs” into action at the moment it’s needed and not before.
What Is a Medical Power of Attorney?
What is a POA for healthcare purposes? A medical power of attorney, also referred to as a healthcare power of attorney, can make decisions regarding the care that the principal receives. This is necessary if the principal becomes unable to make decisions for themselves. This may occur if they suffer a brain injury, fall into a coma, or are diagnosed with dementia.
When trying to decide who should be your POA agent for medical decisions, it can be hard to find someone you trust. You should choose someone who is capable of asking questions and isn’t intimidated by medical professionals. Your medical POA agent should be able to set aside personal feelings so they can make choices that honor your wishes.
What Is a Financial Power of Attorney?
What is a financial POA? A financial POA allows someone to manage your financial decisions if and when you are no longer able to do so. This POA can become effective immediately or after a disabling event occurs.
How Long Does a Power of Attorney Last?
A power of attorney typically lasts until a principal’s death, unless the POA is revoked before this occurs. A POA may also be in effect only until a principal is no longer in need of medical care.
If a POA is not a durable power of attorney, then it will expire should the principal become incapacitated. If the POA agent is married to the principal, then the POA may be terminated upon legal divorce or separation.
A limited power of attorney ends when the task is complete or upon the designated end date. The principal has the right to revoke the limited POA at any time, as long as they are capable of making sound decisions.
Legal Requirements for Powers of Attorney Agents
There are only two legal requirements for a power of attorney agent:
- They must be of a sound mind
- They must be at least 18 years of age
Trust is an extremely important factor when deciding who should be your power of attorney agent. This is because the purpose of a POA is to ensure someone who acts on your behalf will make decisions that optimally benefit you physically, financially, and emotionally.
If you need help setting up a POA, contact our law office today. At Crosby Law Firm, we’ve been putting our clients’ best interests first since 1980 by helping them manage all aspects of estate planning.
Should You Give Your Lawyer Power of Attorney?
You should only give your lawyer power of attorney if you trust they have your best interests at heart and they’re qualified to handle the responsibility. Family members and friends can allow emotion to get in the way of making decisions. Having your lawyer act as your POA agent eliminates this issue.
At Crosby Law Firm, we are qualified and experienced in handling POA responsibilities. Our attorney will make decisions based on your wishes and best interests. Our goal is always to ensure your safety, comfort, and financial and emotional well-being.
Contact Crosby Law Firm
If you need a lawyer to establish a POA, our law firm is here to help. It’s important to understand the details of the type of POA you choose. If you have yet to choose a POA for yourself, we can guide you through the process.
If you’re looking for a power of attorney for hire in Rockford, IL, Crosby Law Firm is qualified and able to protect your best interests. We offer flat fees, no hourly charges, and payment plan options for our clients. Contact us today to schedule a free initial consultation.
